Calculating your property taxes

The municipal tax rate is a big factor in calculating property taxes, but it’s not the only one. It’s important to understand that your individual property assessment also plays an important role. That’s because the city uses the municipal tax rate and your individual property assessment to calculate what you are required to contribute in municipal property taxes.

Here’s how the math works: Your individual property assessment x the municipal tax rate ÷ 1,000 = your property tax total

For example:

Meet Matt. Matt owns a home in Leduc and this year his home is assessed at $345,000. The municipal tax rate is 7.500. Using the math above, we know: $345,000 x 7.500 ÷ 1,000 = $2,588. Therefore, Matt will contribute $2,588 in property tax this year.

Matt’s neighbour Rachel owns a home in Leduc and this year her home is assessed at $350,000. That’s more than Matt’s house. The municipal tax rate is still7.500. Using the math above, we know: $350,000 x 7.500 ÷ 1,000 = $2,625. Therefore, Rachel will contribute $2,625 in property tax this year. That’s more than Matt because her property assessment is higher.

The municipal tax rate gets a lot of attention, whether it increases, decreases or stays the same each year. But, no matter what happens with the tax rate, your property tax bill could fluctuate – because your property assessment most likely has changed due to market value changes from year to year. That’s why the impact of the municipal tax rate on your bill may be different from your neighbours; your property assessment is likely different from theirs.

So what’s the bottom line?

The following main factors can change from year-to-year and each one impacts what you are required to contribute in property taxes:

  • The total amount needed in municipal property taxes to pay for city services;
  • The total assessment value of properties in Leduc;
  • The municipal tax rate;
  • Your individual property assessment value;
  • Provincial education taxes; and
  • Leduc Housing Foundation.

Your property tax bill will also include a line item for education taxes and the Leduc Housing Foundation. These are collected by the city on behalf of the province and foundation, and are not managed by the city.

Property tax calculator

The property tax calculator can help you estimate your upcoming property taxes, based on your property’s assessed value. If you are unsure of your property’s assessed value, you can look it up using the city’s property search tool.

Note: This calculator uses the 2020 property tax rate to calculate the estimate. To confirm your actual property taxes owing, please contact property taxes by email or 780-980-7105