Edmonton, the capital city of Alberta, Canada, sits at the center of the Edmonton Metropolitan Region on the North Saskatchewan River. Praised for its natural beauty, the city is also an urban center filled with many opportunities for anyone living in the area.
The surrounding suburbs present many desirable options for anyone interested in Edmonton real estate. Before moving to Edmonton, it's essential to be familiar with the property taxes that homeowners must pay each year. Depending on where you live around Edmonton, those taxes can vary.
Keep reading to discover which three Edmonton suburbs have the lowest property taxes.
How Property Taxes Are Calculated in Alberta
Property taxes in Alberta are calculated according to the municipality's needs in which they are collected. As a part of this, the mill rate is the amount of taxes owed for every dollar of a property's assessed value. One mill is equal to $0.001, or one-tenth of a cent.
Municipal and Education Tax
Property taxes in Alberta can be broken down into two main components — the municipal and education tax rates. Of course, the actual property tax rate applied is determined by which municipality the homeowner lives in and that municipality's specific budgetary needs.
In addition to the municipal and education tax portion of property taxes, taxes can also include local improvement charges, which are used to pay for projects within the municipality. Another type of tax that doesn't change the actual amount of property taxes paid in the community revitalization levy, which determines how the property taxes collected are allocated.
Property assessment is done annually and determined by the Ministry of Municipal Affairs and the Alberta Assessment and Property Tax Policy Unit. When it comes to categories, properties in Alberta are broken down into three different types: residential and farmland, other residential, and non-residential.
The property is taxed at the highest rate in non-residential properties, including many businesses. Next in line are other residential properties, including Edmonton condos and other multi-family dwellings. Finally, residential and farmland properties are taxed at the lowest rate.
Performed on an annual basis, the property assessment is determined using an approach based on the category of property and whether it's an existing, new, or commercial piece of property. In many cases, properties are assessed using the market value of the property with one of the following three methods:
- Sales Comparison Approach: This approach compares the sales of other properties during the assessment year and might not equal the property's actual market value.
- Cost Approach: This is mainly used with new properties. This approach uses the cost of the property as if someone were rebuilding on it and includes the price of the land and any improvements made.
- Income Approach: With an income-based approach, the amount of income generated on a property, such as with a business, is used to set the property's value.
Farmland in Alberta is assessed under a regulated system. The property value of farmland is set according to a baseline set in 1995, resulting in some of the lowest property tax rates compared to the property's actual market value.
Once a property assessment is done, the city of Edmonton mails a homeowner a notice that shows any change in the value of their property. Homeowners can then file a formal complaint if they disagree with the assessed value, but they have to do so by the deadline on their property assessment notice.
Methodology for This Guide
For this guide, each of the following entries will be based on a hypothetical property with a value assessment of $500,000. The final amount of property taxes owed is determined by multiplying the property's assessed value, in this case, $500,000, by the property tax rate.
In most cases, homes, including condos, townhouses, and luxury homes, are taxed at residential property tax rates. In addition, homeowners will also need to consider whether the municipality in which they live imposes a community revitalization levy, which will have to be paid along with any property taxes owed.
Fort Saskatchewan: 0.85% Property Tax Rate
Fort Saskatchewan Amenities
- West River's Edge Dog Park
- The Fort Distillery
- Fort Saskatchewan Golf & Curling Club
- South Pointe Shopping Centre
Located 16 miles to the north of Edmonton, Fort Saskatchewan is a mid-sized city on the North Saskatchewan River. One of the 24 municipalities making up the Edmonton Metropolitan Region, Fort Saskatchewan, is known for using sheep to help manicure lawns.
The city has a slightly lower property tax rate than nearby Edmonton at 0.847762%. That means for homes in Fort Saskatchewan valued at $500,000, homeowners would pay about $4,239 in taxes, depending on the year. Homes for sale in Fort Saskatchewan range in price from $159,000 to $1.4 million.
Local restaurants include Pots Bar & Grill, serving paninis and other fares in downtown Fort Saskatchewan; Buster's Pizza and Donair, offering a variety of pizza and donairs, a warm pita filled with spicy beef, cheese, and other fillings; and Montana's, sporting a menu filled with juicy steaks.
For outdoor fun, residents can spend time at Turner Park, a playground, picnic area, and walking trails. Also located next door to the park is Fort Lions Campground, touting 42 campsites, many with electricity and sewer, and onsite washrooms and showers.
Devon: 0.81% Property Tax Rate
- Devon Golf & Conference Centre
- Norma Dee's Kitchen
- East of 60 Productions
Devon is a small town located roughly 16 miles to the southwest of Edmonton. Known for its oil fields, the town of Devon has become a leader in tourism, manufacturing, and research. Situated along the North Saskatchewan River banks, the city also has many unpaved bike trails for outdoor lovers.
With a property tax rate of 0.812030%, residents of Devon should expect to pay around $4,060 per year for a home worth $500,000. Devon homes for sale range from $139,000 to more than $700,000.
Local hotspots include Hardy's Your Independent Grocer, which has a garden center, pharmacy, grocery store, and bakery; Shift Happens Bicycle Repair, a shop where area bike riders can purchase bikes and accessories, as well as get their bikes repaired; and Marci's Grill, which offers a variety of burgers, sandwiches, and wraps.
Area parks include Devon Voyageur Park, located at the north end of Devon along the North Saskatchewan River; Devon Lions Campground, an area campground with camping spots along the river; and Highwood Park, with mountain biking trails to the south of the city.
Stony Plain: 0.91% Property Tax Rate
Stony Plain Amenities
- Laura Bella Custom Cakery
- Multicultural Heritage Centre
- Station 83 Bar & Restaurant
- Rotary Park
Directly to the west of Edmonton, Stony Plain is located on Treaty 6 land. The Stony Plain community is also known for the many murals that depict a variety of historical periods, events, and people.
The property tax rate in Stony Plain is 0.911135%. The amount of tax paid for a home with $500,000 is $4,556. Homes for sale in Stony Plain usually cost between $174,000 and $1.4 million. Square footage for homes in Stony Plain ranges from as small as 463 square feet to as large as 4,639 square feet.
When it comes to restaurants, Stony Pains has a lot to offer residents, including Cosmic Pizza, serving a variety of pizzas, chicken wings, and other menu items; Power Plant Grill, located at the Stony Plain Inn; and Codfadders Fish N' Chips, a local seafood place serving fish and chips, as well as other delicious menu items.
When it comes to shopping, Stony Plain has a few options for residents to check out, such as Village Fashions, a small woman's clothing store with a variety of clothing and accessories; LadyBird, a shop selling vintage jewelry, clothing, and other fashion accessories; and Shelly's Finds, home décor and gift store.
Sherwood Park: 0.75% Property Tax Rate
Sherwood Park Amenities
- Sherwood Park Plaza
- Rosie's in the Park
- Emerald Hills Shopping Centre
- The Canadian Brewhouse
The hamlet of Sherwood Park sits on the eastern edge of the city of Edmonton. Sherwood Park is known for its many art galleries and its numerous outdoor recreational areas, including trails, parks, and wildlife sanctuaries.
With a property tax rate of 0.747880%, Sherwood Park residents have one of the lowest tax rates in the region. As such, homeowners should expect to pay roughly $3,739 in taxes on a home worth $500,000. Homes for sale in Sherwood Park and the surrounding area cost anywhere between $55,000 and $5.2 million.
Area restaurants include Chop Steakhouse & Bar, serving seafood, steaks, and more; Thai Together, a family-owned restaurant that serves savoury Thai cuisine; and Gregg Mediterranean Restaurant, which has a menu filled with authentic Mediterranean-style food, such as various shawarma platters, kabobs, and baklava.
Area outdoor recreational areas include the Sherwood Park Natural Area, a 168-acre wildlife oasis filled with miles of hiking trails; Strathcona Athletic Park, filled with baseball and soccer fields, as well as numerous tennis courts, among other sports facilities; and Broadmore Public Golf Course, an 18-hole golf course in the heart of the Sherwood Park community.
Spruce Grove: 0.95% Property Tax Rate
Spruce Grove Amenities
- At the Trax Public House
- Marlboro Off-Leash Park
- Broadway & Grand
- Talking Dog Brewing
Located to the west of Edmonton, Spruce Grove is known for producing sports stars and being a center of art and culture. With two major highways nearby, one to the north and one to the south, Spruce Grove makes it easy for its residents to access everything nearby Edmonton offers.
The property tax rate of Spruce Grove is 0.945080%, meaning that homeowners will have to pay $4,725 in property taxes on a home assessed at $500,000 in value. Spruce Grove real estate prices start at around $274,000 and go up to $890,000. Square footage ranges from under 1,000 square feet for a less expensive home up to 3,000 square feet for a more expensive model.
Things to do in Spruce Grove include spending a day golfing at The Links at Spruce Grove, an 18-hole golf course that also has a restaurant, The Grill at the Links; get some exercise at the TransAlta Tri Leisure Center, which has a pool, gym, and other facilities; or taking in some of the area's art and culture at the Spruce Grove Art Gallery.
When it comes to restaurants, Spruce Grove residents have a few choices, including Porta Romana, a family-run Italian restaurant, and Barbacoa, serving Caribbean-inspired food.
- The Bower
- Arcadia Brewing Company
- Boss Pizza
- Pylypow Constructed Wetland
Edmonton, the capital city of Alberta, Canada, sits at the center of the Edmonton Metropolitan Region. Known as "Canada's Festival City," the festivals in Edmonton promise year-round fun. The city is also known for its bustling culinary scene, with many restaurants to enjoy.
Property tax rates in Edmonton currently sit at 0.958920%. This means that homeowners with a home appraised at $500,000 should expect to pay $4,795 in taxes. Having such a diverse real estate market, Edmonton has a price point to match every budget. The most affordable neighbourhoods in Edmonton have prices below $100,000, while Edmonton luxury homes can cost more than $5 million.
Restaurants in Edmonton include the Duchess Bakeshop, a French bakery with a wide selection of baked goods; Normand's, offering seafood specials and other delicious menu items; and Bundok, which gives diners a selection of small plates mixed with craft cocktails.
Other areas of interest within the Edmonton area include West Edmonton Mall, one of North America's largest malls, and Fort Edmonton Park, Canada's largest living history museum.
Find the Lowest Property Taxes in Suburbs Near Edmonton
Potential homebuyers should pay close attention to the property tax rates when buying a home in and around the Edmonton area. This allows them to budget and plans accordingly to find the perfect home. Once that is out of the way, residents can focus on enjoying all that the region has to offer.
As one of the youngest cities in Canada, Edmonton is exciting and vibrant and an urban center with many opportunities. Whether it's dining at a favourite restaurant, getting wrapped up in the area culture, or spending time in the great outdoors, the Edmonton Metropolitan Region offers a wide choice of living options.
If you're looking for the perfect Edmonton home, contact Terry Paranych Real Estate Group in partnership with Justin Havre at (780) 800-9644 to get in touch with a local Edmonton real estate agent and discover your new dream home today.