As oil prices rise, some members of Calgary city council are hoping the province will give the city more money as property tax rates are finalized for the upcoming year.
Calgary city council approved the 2026 property tax rates on Tuesday, following the provincial government’s budget and confirmation of its share of the levy.
For a typical single‑family home assessed at about $706,000, the city estimates an annual increase of nearly $390. That includes a $49 rise from the municipal side, roughly 1.8 per cent, and a $338 jump from the provincial education levy, a 21 per cent increase.
Council had already locked in its share of the tax hike last year, but waited for the province to finalize its portion through the budget.
The size of the provincial increase has drawn sharp criticism from Mayor Jeromy Farkas, who has argued the education tax has grown by more than $212 million and compared the province’s approach to federal equalization payments. Premier Danielle Smith rejected that comparison, saying the levy directly supports Calgary students and helps fund new schools.
The mayor is now urging the province to share more revenue as oil prices climb.
“We’re hoping for a revised tabled budget document,” Farkas said, adding that rising global oil prices, driven in part by conflict in the Middle East, should translate into additional support for municipalities.
The province pushed back on that expectation. It said any extra revenue from higher oil prices before April 1 will go toward reducing the 2025–26 deficit, not the projected $9.4 billion shortfall in 2026–27.
“A few weeks of strong oil prices is not enough to offset an entire year,” reads a statement. “Surpluses aren’t a discretionary pool that can simply be reallocated on demand.”
Coun. Dan McLean said it’s still worth asking.
“You don’t ask, you don’t get sometimes, so we’ll see how it goes,” he said.
Economists note that if high oil prices persist, Alberta’s fiscal picture could shift dramatically. University of Calgary professor Trevor Tombe said that at around $100 per barrel, roughly $40 above the province’s budget, Alberta could erase its deficit.
“That right there alone would translate, if sustained for an entire year, into roughly $30 billion,” he says.
Property tax bills will be mailed out in May. Residents can estimate their 2026 taxes and see a breakdown of where their dollars go at calgary.ca/taxcalculator.