Residential Property Taxes
When buying a new home, always be sure to calculate property taxes into your monthly expenses. Sometimes mortgage companies include this as part of the mortgage (they pay taxes on your behalf) but be sure to clarify this before final signing your mortgage.
Quite often a MLS listing will state the tax amount of the previous year – however it is important to note that taxes usually increase every year with inflation, and at the end of May, all property owners are sent a statement saying what the taxes will be for the following year. For the city purposes, the new property tax year ends June 30 (coincidentally the busiest day of the year for real estate transactions).
Property taxes in the city of Edmonton are composed of 3 parts:
Muncipal portion- based on the budget set each year by city council
Provincial Education portion- set by the Alberta government
Local improvement portion- this is often an assessment added on for improvements made in your specific area (ie. sidewalk replacement, light posts, etc..) It can be added to a one year statement, or if the cost is more significant, it is often spread out over many years, as to not raise your taxes by more than a minimal amount.
Since the end of the property tax year is June 30, it is important to be aware of this when you are buying or selling a home. Often the buyer or seller will need to reimbursed for paying taxes up until June.30.
