Property Taxes

Each year, Council sets the municipal tax rate as part of the budget process. The goal is to ensure the Town has enough revenue to fund services, operations, infrastructure and community priorities while maintain a balanced budget. The tax rate is determined based on: 

• The total cost of providing municipal services and planned investments
• Other sources of revenue, such as user fees, grants, and transfers 
• The total taxable assessment within the community  

In practical terms, the tax rate is driven by the Town’s overall revenue requirement. If operating revenues (such as fees, grants, and other income) are not enough to cover operating expenses, the remaining amount becomes the municipal tax requirement. Property taxes are then used to fund that difference and balance the budget. 

Step 1:  
Council approves the annual budget with a ~$13M Tax Requirement 

Step 2:  
Total assessment is finalized at ~$2.0B 

Step 3:  
Tax Rate is calculated (Tax Requirement/Assessment = Tax Rate). This ensures enough revenue is generated from all property owners to the fund the budget. 

Step 4:
Taxes are distributed across all properties based on assessed value. This year the average residential property will see an impact of about +$21.92/month. 

On April 27, 2026, Olds Town Council approved the 2026 Operating Budget while maintaining the same municipal tax rate as 2025. 

Although the municipal tax rate remained unchanged, individual property tax impacts will vary depending on changes in property assessment values. 

Your property tax bill has three main components: 

• The municipal tax rate set by Council  
• Your property’s assessed value, which is completed using provincially regulated standards to ensure fairness and consistency 
• Education and Seniors Housing Requisitions, which the Town collects on behalf of the Province and Mountain View Seniors Housing  

Even with no increase to the municipal tax rate, some residents will still see changes in their total tax bill in 2026. This is primarily due to: 

• Changes in property assessments, which affect how taxes are distributed  
• An increase in the provincial education tax  

Both factors are outside of the Town’s direct control. 

Property taxes are calculated using a simple formula: 
Property Assessment × Tax Rate = Property Taxes 

When your property’s assessed value increases, your tax bill also increases, even if the tax rate does not. 

Property values are determined through a provincially mandated process called mass appraisal. This method considers: 

• Market trends  
• Property characteristics (location, lot size, etc.)  
• Comparable property sales within the community  

Since property values change at different rates, tax impacts can vary from one property to another. 

Council’s 2026 budget focuses on stability, maintaining services while planning responsibly for the future. This includes continued investment in aging infrastructure and contributing to reserves to support long-term financial sustainability and future capital needs, all while avoiding an increase to the municipal tax rate. 

The 7.2% increase in the 2026 Operating Budget is driven by: 

• Service delivery costs  ~$790K
• Infrastructure and utility costs  ~$440K 
• Contributions to reserves  ~540K 

It’s important to note that property taxes only fund part of the Town’s budget, along with other revenues such as user fees, grants, and utility charges. The municipal tax increase is used to support key services and priorities within the Town’s control, including: 

• People and Staffing  
• Infrastructure and Asset Maintenance  
• Reserves for future infrastructure funding 

Residents are encouraged to review the Town of Olds 2026 Operating and Capital Budgets  online. 

For specific questions related to your property taxes, please contact the Town of Olds at 403-556-6981. 

For questions related to your properties assessment contact our Assessor by filling out an inquire form at www.kcl-consulting.com  

For additional information on how Alberta Municipalities is advocating for changes to property taxation in Alberta, visit the Alberta Municipalities “Property Taxes Reimagined” webpage. 

To learn more about the provincial portion of your tax bill, including how education property taxes are calculated and used, visit the Government of Alberta “Education Property Tax: Facts and Information” resource.