Understanding Property Taxes

1. Calgary Uses “Assessment Models” — Not Individual Appraisals

The City of Calgary does not appraise each home individually.

Instead, Calgary groups homes into Assessment Models, which are based on:

• Build era

• Neighbourhood type

• Lot patterns

• Property style (detached, semi, rowhouse)

• Location characteristics

• Zoning

• Land use patterns
  
  

Typically, each model includes 3–4 nearby communities built in similar time periods.

Important:

A home is compared ONLY to homes in its assessment model — not to the entire city.

2. Assessments Are Always One Year Behind

For every tax year:

• The valuation date is July 1 of the previous year.

• The City uses three years of sales data up to that date.

Example

2025 taxes are based on the City’s estimated value as of:

July 1, 2024

This means assessments do not reflect current market conditions — they reflect the market up to one year earlier.

3. How the City Determines Value (Direct Comparison Approach)

For most residential properties, Calgary uses a mass appraisal direct comparison approach, based on:

• Build era

• Lot size, frontage, shape

• Zoning (RC-1, RC-2, M-C1)

• Living area

• Garage type

• Site influences

• Community characteristics
  
  

The City adjusts values within each model for things like:

• Cul-de-sac vs. busy road

• Park adjacency

• Green space exposure

• Proximity to commercial

• Highway adjacency

• Lot desirability

• Corner lots

• Unique or irregular lots
  
  

4. Renovations Only Matter if the City Knows About Them

The City does not know about interior renovations unless:

• A permit was issued

• The improvement is visible externally
  
  

This means:

• New kitchen → no impact if unpermitted

• New bathroom → no impact if unpermitted

• Basement development → no impact if unpermitted

• Flooring, lighting, paint → no impact

• Cosmetic upgrades → no impact

✔ Land value and location influences matter FAR more than interior condition.

5. Why Similar Homes Have Very Different Taxes

Your example illustrates this perfectly:

Home A: Renovated semi-detached

• Backing onto major highway access

• High noise + traffic exposure

• Lower land desirability

• Lower taxes, even though it looked “newer” inside
  
  

Home B: More original semi-detached

• On a quiet cul-de-sac

• High land desirability

• Higher taxes, even with older interior finishing

Interior updates did not affect the City’s valuation.
Location did.

6. Where Realtors Should Look When Investigating Assessment Variances

RE Maps (Pillar 9)

Use for:

• Lot size

• Road adjacency

• Cul-de-sacs

• Zoning

• Green space

• Influences around the home

• Traffic patterns

• Neighbourhood context
  
  

Realist (Matrix)

Use for:

• Permit history

• Lot configuration

• Comparable assessed values
  
  

City Assessment Search

https://assessmentsearch.calgary.ca
Shows:

• Total assessed value

• Assessment history

• Legal description

• Lot details
  
  

(City no longer shows land vs. building breakdown.)

7. How to Explain This to Clients

Here is a simple script your agents can use:

“Calgary assesses homes in groups of similar communities built in similar eras.
They rely on sales from the past three years and value your home based on what it would have sold for as of July 1 of the previous year.

The City does not know about interior renovations unless they’re permitted, so land location — cul-de-sac, busy road, zoning, and lot size — drives the assessment more than interior finishes.”

8. Summary

• Calgary uses assessment models grouping similar communities

• Assessments are always one year behind the market

• Land desirability drives assessment more than interior finishing

• Site influences explain most tax differences

• Renovations only count if permitted

• RE Maps + Realist + City tools help Realtors interpret variances confidently