Why a higher assessment doesn't always raise your tax

Every January, someone opens an assessment notice, sees a bigger number than last year and assumes their tax bill is about to jump by the same amount. Often it won't. Here's why.

A higher assessment doesn't automatically mean a higher tax bill. What matters is how your change compares with the average change in your municipality, and the tax rate council sets.

How your tax is worked out

Your property tax is, in simple terms:

assessed value × tax rate

The assessed value comes from the assessor. The tax rate comes from your municipality, set each year after the assessment roll is complete. Council decides how much money it needs to raise, and the rate is set to raise it across all the assessed value in the municipality. Provincial education and other levies work in a similar way.

So when values across a city rise, the rate needed to raise the same budget falls. The rise in values alone doesn't raise your bill. What moves your bill is:

1. The budget. If the municipality needs more money this year, bills go up across the board.
2. Your change compared with everyone else's. If your value rose more than the typical home's, you carry a bigger share of the total. If it rose less, you carry a smaller share.

A worked example

Real cities have far more properties, several property classes and budgets that change, but the principle is the same.

What this means for your notice

• Compare your change with the typical change. Many municipalities publish the average or typical change in residential values when notices go out. If yours is in line, your bill will mostly track the budget.
• If yours rose much more than typical, look closer. It may be right, after a renovation for example, or it may reflect an error or a value out of line with similar homes.
• Compare like with like. The strongest test is how your value per square foot compares with similar homes nearby. That's the comparison that matters in a review.

Why this is the argument that works

Assessment reviews generally turn on fairness between similar properties: whether your home is assessed consistently with homes like it. Our check measures exactly that. Similar homes means: same community, same structure type, built within 10 years of yours, living area within ±15%, lot size within ±25%, and at least 8 of them.

The flip side

A lower assessment doesn't always mean a lower bill either. If the budget rises, you may still pay more than last year, just less than you would have. That's why, when a review succeeds, we show you the saving compared with what you'd otherwise have paid, using the municipality's published rate, and where and when it appears.

You may be fairly assessed. If you are, we'll tell you.

Questions to ask when your notice arrives

• How much did typical values change? Look for the municipality's published figure for residential properties.
• How much did mine change? Compare this year's notice with last year's.
• Is the difference explained by something real? A renovation, an addition or a change in use can justify a bigger rise.
• Do the facts on file match my home? Floor area, year built, basement and garage are worth a minute each.
• How does my value per square foot compare with similar homes? This is the question that decides whether a review is worth it.

If your change is in line and the facts are right, the rise in value is unlikely to be what moves your bill.

Check your assessment, free

The assessment check is free and you don't need to create an account to see your result.

Property address

Street number and street name, for example 123 Panorama Hills Blvd NW, Calgary

Postal code(optional)

Optional — helps us match the right property when a street name repeats.

Check this address

What it costs if you go ahead