Premier Danielle Smith says her government is reducing education property taxes starting next year after it brought in successive hikes for ratepayers.
It means in the spring, many Alberta home and farmland owners will pay almost seven per cent less than this year while commercial and industrial property owners will pay almost five per cent less.
Smith said Friday in Calgary the new rate will be frozen for three years so municipalities can plan with certainty.
“No matter where Albertans live, they should be able to count on a fair, consistent and predictable approach to education property taxes,” she said.
The government estimates it will mean almost $100 million in savings for taxpayers in the first year, and the new rate will be standardized across the province, instead of varying from town to town.
The announcement comes after blowback from municipal leaders, particularly in Calgary, over previous UCP budgets that drove up education property taxes.
Municipalities collect the tax from all property owners on behalf of the province but those governments don’t control the rates.
It also comes in the wake of a byelection last month that saw Smith’s UCP lose a seat in the conservative stronghold of Calgary-Shaw.
Some political watchers attributed the loss to voter dissatisfaction over Smith’s referendum on separating from Canada, which sparked a debate that roiled the province all summer.
In a provincewide vote last week, Albertans decided overwhelmingly to remain in Confederation.
When asked Friday whether she was “buying votes” in Calgary as recent public opinion polls suggest sagging support in the city, Smith said she wants people to see her government is listening.
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“I hope people look at this and see that we heard loud and clear that the issues that we have been talking about for the last couple of months aren’t really the top-of-mind issues for Calgarians,” she said.
She pointed to taxes, school supports, hospitals, and transportation issues as priorities.
“This is just the first step of our commitment to demonstrating that we took the message from what’s happened in the most recent byelection.”
Calgary Mayor Jeromy Farkas has been outspoken in his criticism of the last provincial education property tax increase, noting it hit Calgarians harder than other Albertans.
On Friday, Farkas thanked Smith, and called the announcement “transformational” and “generational.”
“We now expect to be able to provide a lower overall residential property tax increase to Calgarians,” he said.
Edmonton Mayor Andrew Knack also praised the move, saying in a government statement it simplifies the process for calculating the province’s education property tax while also providing more transparency to Edmontonians.
In Edmonton, the education portion accounts for approximately 30 per cent of the total property tax amount.
Alberta, an oil-rich province whose finances are perennially tied to international energy markets, has seen its budget projections swing wildly after war in the Middle East sent global energy prices surging.
In February, the province was projecting a $9.4-billion budget deficit, but as of the latest fiscal update, it’s now expecting a $2-billion surplus in fiscal 2026.
Finance Minister Jason Nixon said Friday he’s confident the province can absorb the cost without cuts to education.
“The approved education budget will not be reduced,” he said.
Opposition NDP Leader Naheed Nenshi said in a statement the tax freeze does very little to help Albertans and nothing to help Smith’s political standing.
He said last year’s increase meant the average Calgary home’s property taxes went up by over $350, but the decrease will only mean a savings of about $75 for homes that don’t go up in value.
“This year, (the UCP is) paying for this by shifting that property tax burden to rural homeowners who would see increases. But conveniently, only after the next election date,” said Nenshi.
“They’ve downloaded costs on municipalities, driven property taxes higher, and wasted hundreds of millions on a divisive referendum that only their separatist pals wanted.”
The government said for Albertans in communities where the new provincial rate may be higher than their current local rate, the province will offer a one-time transition tax credit in 2027.
Nixon said he expected that credit will offset the difference.
“Nobody will pay more than they would have paid before this and the vast majority will pay less than they will have before this,” he said.
For those seniors that don’t want to pay education taxes so if I am perfectly healthy can I stop paying taxes to support the health care system because I don’t have a use for it at this time?
Should people over 65 not have to pay as much education taxes? Yes they should pay less than those that are below 65.
We live in an age where we all pay way too much tax and that is due to very poor management by all levels of government ! But we do nothing about it and keep paying!
Wise words from anonymous the uneducated bum of the mind.
Farkus is saying this is generational but with the other hand he is digging deeper into the Calgarian taxpayer’s pocket with ridiculous water rate increases and his own property tax increases. So what now since we get this little back from the province , is he going to look for more municipal rates and taxes to increase?
Hey Calgarians it is not so much the province that is increasing your costs of living but the Farkus lead council that is increasing your costs of living in Calgary!
Demand better from your municipal government!
Wendy
October 31, 2026 at 7:07 am
Sure Wendy, I am almost certain Liberal or Conservative we all pay extremely high property taxes.
Go cry about something else.
Wow it is like someone flipped a switch. One day Smith is a conservative fighting for Alberta, the next day she is a vote buying liberal on the side of Canada instead of Alberta
This joke is only to distract from the millions she is giving to private pals.
I’m a senior with no children, and I’m quite happy to pay an education tax (I just wish the UCP would put it towards education).
Almost every day, I, like most seniors, use the services of someone educated in our educational system, whether it be a doctor or a waitperson or a bus driver or a teacher. If I want that service, why shouldn’t I pay for it?
Furthermore, other people’s taxes paid for my education. If it wasn’t for their supporting my education, I would never have made enough to even pay taxes. If we can’t pay it back, we should pay it forward.
i don’t have kids why the hell should i have to pay for some one else’s wad shot, maybe they should have had a box of rubbers
It would be nice if she would cancel all seniors having to pay property taxes, since they have already paid for their children going to school and now they are paying taxes as they have their own children.
And what about seniors who never had children? Why are they required to pay school taxes?