FAQs

Property taxes are a critical source of income for municipalities. In 2022, property tax made up 57 per cent of the City's entire budget or about $1.8 billion. This included income from the Other Residential subclass, which contributes about six per cent of the total property tax revenue or about $113 million.

Residential property tax subclassing is the concept of charging different property tax rates for different types of residential property.

The rationale for this higher tax subclass is that multi-unit apartment complexes are for-profit businesses that can deduct their taxes as a business expense. On the other hand, these higher taxes increase the costs of managing an apartment building, which contributes to higher rents. Some may consider this unfair.

The City of Edmonton calculates the property taxes for each property by assessing the property’s market value, then applying a tax rate to that assessed value. Most residential properties are charged the same property tax rate (so a $400,000 property pays half as much as an $800,000 property). One category of residential property (those with four or more dwelling units on a single title) are treated slightly differently - they are also assessed at market value, but are taxed at a 15 per cent higher tax rate. This is called the “Other Residential” subclass.

If the existing Other Residential subclass is eliminated, property taxes would decrease for owners of apartment buildings, and proportionately increase for individual homeowners to ensure the City collects the same amount needed to fund its programs and services.