The province has once again increased the education portion of property taxes, bringing the total that municipalities must collect to $3.6 billion. Finance Minister Nate Horner says the province is not interesting in system where it collects that money itself.--CP FILE PHOTO
zmason@medicinehatnews.com
Hatters can expect to see property taxes increase this year as the province increases the education property tax for the second straight year.
The province will collect an additional $500 million across the province, bringing the total to $3.6 billion.
The education property tax is levied by the province to subsidize Alberta’s education system, however it is collected by municipalities as a line item on the property tax.
The City of Medicine Hat says it will result in another tax jump for residents – a challenge for the city as municipal taxes are also set to increase.
In 2025, Medicine Hat’s share of the education requisition totalled $29.9 million, a year-over-year increase of 11.7 per cent. That translated to an additional $83 per year in property taxes for a median assessed home valued at $334,400.
In 2026, the provincial budget is asking Medicine Hat for $32.5 million for the education requisition, an increase of $3.1 million to 8.7 per cent over last year.
The city says that will result in another $83 per year in property taxes for the median homeowner in the Hat.
The mayors of Calgary and Edmonton have both criticized the tax hike in the days since the budget’s release.
Homeowners in those cities will be asked to pay an additional $340 and $150 on average, respectively.
The rate of the province collects under the education levy is determined based on property value.
Calgary Mayor Jeromy Farkas and Edmonton Mayor Andrew Knack have both criticized the increase, arguing the province should use taxes collected at the provincial level to fund provincial services.
Alberta Municipalities, the organization that represents 264 municipalities across the province including Medicine Hat, says Budget 2026 shifts responsibility from the provincial government to municipalities for needed tax increases.
“The provincial government is telling Albertans that it won’t increase taxes to pay for all the things it’s funding in Budget 2026. That’s misleading,” said a statement Thursday.
The organization says hiding provincial tax increases in property tax bills may make life less affordable for Albertans on low or fixed incomes.
At a budget-related press conference last week, Finance Minister Nate Horner said the province was not interested in devising a provincial system for collecting the education property tax.
“I don’t think it’s something they should be asking for,” said Horner. “We’re not going to create duplicate systems to create these things. I don’t think they want us to collect all their revenue on their behalf. I wouldn’t if I was them.”
Horner suggested municipalities have a line item that clarifies which component of their bill is required by the province.
If passed, Budget 2026 will see the province run a $9.4 billion deficit.
At a press conference Monday, Premier Danielle Smith was asked about the possibility of adding a provincial sales tax.
The premier said if Albertans felt there was an appetite to add a PST, they should start a citizen initiative petition advancing that question.
If a petition generated the requisite support in time, Smith says that question could also be put to referendum in October.
“I would say that all of the voices who are asking for it, then maybe they should put their boots where their mouth is and go out and get some signatures if they’re so intent on it,” she said.
Smith’s government recently changed the application fee for a citizen initiative petition from $500 to $25,000.
