The City of Edmonton has mailed out property assessment notices for 2025, and homeowners are shocked by the dramatic increases. Many clients have already reached out to Iconic YEG Real Estate Team, sharing their disbelief. One client’s loft skyrocketed from $369,000 in 2024 to $415,500 this year—a staggering 12.6% jump! Yet, based on current market trends, that loft would likely sell for no more than $375,000. Another client in Laurel saw their assessment leap from $457,000 to $502,500, a 10% increase—and while their property recently sold for $520,000, the gap between assessment and market value isn’t always so favorable.

These discrepancies raise critical questions: What do these assessments really mean, and how do they impact you?

Edmonton Neighborhoods with the Biggest Assessed Value Changes

Some Edmonton neighborhoods are seeing explosive growth in assessed values, while others remain relatively stable or even decline.

Neighbourhoods with the Highest Increases:

• Central McDougall: +16.9%

• Richfield: +16.1%

• Britannia Youngstown: +15.3%

• Rossdale: +14.5%

• Athlone: +14.2%

Neighbourhoods with Declines or Minimal Increases:

• Virginia Park: -6.3%

• Ogilvie Ridge: -0.3%

• Rio Terrace: -0.3%

• Bearspaw: 0%

• Bellevue: +0.3%

These dramatic differences highlight the importance of understanding your local market. Whether you’re benefiting from rising values or wondering why your neighborhood lags behind, this is a critical time to assess your property’s current market value.

2024 Market Trends: The Backdrop to Rising Assessments

Last year, Edmonton’s real estate market experienced significant growth:

• Average Home Prices: Rose to $436,401 in November 2024, up 15% year-over-year.

• Detached Homes: Jumped 13% YoY to $540,320.

• Condominiums and Townhouses: Condo prices surged 16% to $200,266, while townhouses climbed 6.3% to $288,176.

This growth has fueled higher assessments, but it doesn’t always tell the whole story. Market value and assessed value often diverge, especially when the city’s estimations don’t reflect your property’s condition or recent upgrades.

The Truth About Property Assessments

A property assessment is not the same as market value. Instead, it’s the city’s estimate of your home’s worth as of July 1 of the previous year. This value helps determine how much you’ll pay in property taxes. Factors like location, lot size, and comparable sales play a role, but the city doesn’t account for your home’s actual condition unless it has recently sold. If your property requires significant repairs or hasn’t been updated, its assessed value may be higher than its true market worth.

Why Are Assessed Values Soaring?

The median assessed value for a detached single-family home in Edmonton rose to $465,500 for 2025—a $37,000 increase from last year. Why?

• Population Growth: Edmonton is booming as more people move to Alberta, driving demand for housing.

• Neighborhood Popularity: Areas like Central McDougall and Richfield are seeing renewed interest, pushing values higher.

• Tax Revenue Needs: The city council approved a 6.1% property tax increase for 2025, distributing the burden across property owners.

How Property Taxes Are Calculated

Your property tax bill depends on two key factors:

1. Assessed Value: The city determines this based on your property’s market value as of July 1 of the previous year. They consider size, location, and recent sales but may overlook unique features or current condition.

2. Tax Rate: Set annually by the City of Edmonton, this rate is expressed in "mills," where one mill equals $1 per $1,000 of assessed value. It funds essential services like schools, emergency services, and infrastructure.

For example, with a median assessed value of $465,500, a homeowner can expect to pay approximately $3,550 in municipal taxes for 2025, about $204 more than last year.

What You Can Do Now

Don’t let these assessments catch you off guard. Take control:

1. Review Your Assessment: Visit myproperty.edmonton.ca to verify the details. Look for errors in property size, features, or other factors.

2. Compare to Market Trends: Does your assessed value align with recent sales in your area? If not, it may be time to dig deeper. Contact Caitlin Heine with Iconic YEG to review recent sold data. 

3. File an Appeal: If your assessment seems off, you have 60 days to file an appeal. Be prepared with evidence like recent comparable sales.

4. Plan Ahead: Higher assessments mean higher taxes. Budget accordingly to avoid surprises when bills arrive in May.

Contact Iconic YEG with RE/MAX Real Estate

As Edmonton grows, navigating the complexities of the real estate market has never been more important. Whether you’re buying, selling, or trying to make sense of your property assessment, Caitlin Heine and the Iconic YEG Real Estate Team are here to help.

Visit www.iconicyeg.com or call Caitlin today at 587-336-3176 to get started.

Whether you’re navigating assessments, buying, or selling, we’re here to make your 2025 a year of smart moves and big wins in Edmonton real estate!

When it comes to owning a home in Edmonton, understanding property taxes is crucial. However, the process can seem complex and daunting for many homeowners. In this blog, we'll break down how property taxes in Edmonton are calculated and provide insights into what you can expect for 2024 and 2025.

How Are Property Taxes Calculated?

Property taxes in Edmonton are calculated based on two main factors: the assessed value of your property and the tax rate set by the City of Edmonton.

1. Assessed Value of Your Property:

   • Every year, the City of Edmonton assesses the value of properties across the city. This assessment is based on the market value of your property as of July 1st of the previous year. The assessment takes into account various factors, including the size of your home, the lot size, location, and recent sales of similar properties in your area.

   • For example, the assessed value used for your 2024 property taxes would be based on the market conditions and property characteristics as of July 1, 2023.

2. The Tax Rate:

   • The tax rate is set by the City of Edmonton and is expressed in "mills" or "millage rate." One mill represents $1 of tax for every $1,000 of the assessed property value. The city determines the tax rate based on the budgetary needs for public services, including schools, emergency services, and infrastructure maintenance.

   • Each year, the City Council approves the tax rate based on the financial requirements of the municipality. This rate can fluctuate based on economic conditions, inflation, and the city's budgetary needs.

What Can Homeowners Expect in 2024 and 2025?

As we move into 2024 and 2025, several factors may impact your property taxes:

1. Rising Home Values:

   • Edmonton's real estate market has seen fluctuations in recent years, with some areas experiencing rising home values. If your property’s assessed value increases, you may see a corresponding rise in your property taxes, even if the tax rate remains unchanged.

2. City Budget Adjustments:

   • The City of Edmonton may adjust tax rates based on its budget needs. With ongoing investments in infrastructure, public transit, and other community projects, there could be slight increases in the tax rate to accommodate these expenses. It’s important to stay informed about City Council decisions, as these will directly impact your tax bill.

3. School Taxes:

   • A portion of your property taxes goes towards funding public education. In 2024 and 2025, school taxes may fluctuate depending on provincial funding allocations and local school board requirements. The amount allocated to school taxes is determined by the province and can vary each year.

4. Tax Relief Programs:

   • For homeowners facing financial difficulties, Edmonton offers tax relief programs, such as the Seniors Property Tax Deferral Program and the Tax Installment Payment Plan (TIPP). These programs can provide relief by deferring payments or allowing you to pay in monthly installments rather than a lump sum.

Planning for the Future

Understanding how property taxes are calculated and what factors influence them can help you plan your finances better. Here are a few tips to keep in mind:

• Review Your Assessment: Every January, the City of Edmonton sends out property assessment notices. Review yours carefully. If you believe your property has been over-assessed, you can file a complaint through the City's assessment review board.

• Budget Accordingly: Since property taxes are a recurring expense, it’s wise to budget for potential increases each year. Setting aside funds regularly can help ease the financial burden when the bill arrives.

• Stay Informed: Keep an eye on City Council meetings and decisions that may impact property taxes. Being proactive will ensure you're not caught off guard by sudden increases.

Final Thoughts

While property taxes can seem complex, understanding the basics of how they are calculated and what factors influence them can help you better manage this important aspect of homeownership. As we approach 2024 and 2025, staying informed and planning ahead will allow you to navigate any changes in property taxes with confidence.

If you have any questions or need further guidance, the Iconic YEG Real Estate Team is here to help. Contact us today to discuss your property tax concerns or any other real estate needs.

Caitlin Jane Heine

Owner | Agent

587-336-3176

caitlin@iconicyeg.com

www.iconicyeg.com