Canmore Proposes 6.2% Property Tax Increase for 2027

Canmore homeowners could see their municipal property taxes rise in 2027, with town administration proposing a 6.2 per cent increase to help cover rising operating costs, infrastructure needs and continued community growth.

According to a report included in the Nov. 5 Finance Committee agenda, the increase would add approximately $180 annually to the municipal tax bill for a median single-detached primary residence assessed at $1.718 million in 2026.

A further 5.4 per cent municipal tax increase is proposed for 2028.

The increases are part of Canmore's proposed operating budgets, which total $106.6 million in 2027 and $112.7 million in 2028. The 2027 budget represents a 7.2 per cent increase over 2026.

Town administration says most of the additional spending is needed to maintain existing municipal services while responding to growth.

Financial pressures include inflation, rising labour and contractual costs, infrastructure maintenance and continued contributions to municipal reserves.

Growth adds to financial pressures

According to the report, the average construction value of building permits issued in 2024 and 2025 was 123 per cent higher than the previous five-year average.

While new development is expected to generate approximately $1.5 million in additional property tax revenue in 2027, the town says many growth-related expenses arise before that revenue is collected.

The proposed capital plan also includes $575.2 million in planned investments between 2027 and 2032.

Among the largest operating expenses proposed for 2027 are $34.5 million for salaries, wages and benefits, $24.6 million for contracted services and $22.6 million in transfers to reserves.

Livability Tax revenue remains below expectations

The proposed increase comes as Canmore continues to adjust its financial expectations for the Livability Tax, which applies higher rates to certain properties that are not primary residences.

As previously reported by Bow Valley Insider, the town originally budgeted $10.3 million in Livability Tax revenue for 2026 but reduced that forecast to $4.4 million following provincial legislation exempting Alberta residents from the higher rate.

Further adjustments to 191 property tax bills reduced expected revenue by nearly another $1 million.

The town is now forecasting approximately $3.4 million annually from the program in 2027 and 2028.

However, the Livability Tax is separate from the proposed municipal property tax increases. Its revenue is reserved for approved housing and livability initiatives, program administration and related investments, rather than general municipal operating expenses.

Budget discussions continue

The proposed tax increases are not yet final.

The Finance Committee is scheduled to continue reviewing the proposed budget throughout November before council considers final approval.

Residents can review the town's budget information and follow upcoming Finance Committee meetings as discussions continue.