ABmunis: Albertans’ property taxes will go up because of Budget 2026

Alberta Municipalities (ABmunis) has decided to say the quiet part out loud: Albertans will pay more property tax this year because of the Government of Alberta's decisions, as presented in this budget.

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.

Budget 2026 shifts the tax burden to property taxes. It shifts responsibility from the provincial government to municipalities and removes tax room for municipal priorities. We’re concerned that hiding provincial tax increases in the property tax bills that municipal governments must collect will make life less affordable for those Albertans with lower or fixed incomes. 

We’re disappointed to see no funding increases for Family and Community Support Services (FCSS) in Budget 2026. By not investing in local prevention programs, the provincial government has missed a critical opportunity to change the trajectory of growing costs in systems that have been stretched to the breaking point – systems like health care, emergency services, and policing. 

The provincial government’s decision to not enlarge the Local Government Fiscal Framework (LGFF) capital funding pot and other municipal infrastructure programs means urgently needed municipal infrastructure projects across Alberta will be postponed, delayed, deferred or cancelled. Unless additional funding is provided, Albertans can expect more failures to infrastructure in the coming years – costly events like broken water and sewer pipes and crumbling roads and bridges. Furthermore, investments in municipal infrastructure are critical to enable further economic growth.

Alberta’s systemic provincial funding deficit has been an unresolved issue for more than 20 years. Alberta has a $16.9 billion tax advantage over other provinces. Despite this, costs continue to be downloaded onto municipal governments and property taxes are funding provincial services.

Alberta Municipalities urges the provincial government to begin a conversation with municipalities, other stakeholders, and Albertans to reimagine how to fund and pay for everything Albertans deserve and to ensure our province continues to grow and succeed for generations to come.  

Those are our initial thoughts, based on our first reading of the budget document. We'll have more to say once our policy experts have reviewed Budget 2026 line by line and determined what it means for Albertans and ABmunis' 264 member-communities.