2. How much are my property taxes?
As a homeowner, property taxes will be a yearly cost for you from now on, and in certain areas of Calgary – due to the value of the houses – they can be hefty.
Municipal property tax rates vary from one municipality to the next, and they are typically calculated as a percentage of the home’s market value, or
essentially what that home can be sold for. A home’s market value is not necessarily the same as the purchase price. If a buyer got a great deal by paying $220,000 on a house deemed to be worth
$300,000, the municipality will still calculate the taxes based on the $300,000 valuation.
Property taxes rise as a home’s value appreciates. They are charged annually, and new homeowners are responsible for paying the taxes covering the portion of the year remaining upon taking possession of the house. For example, if a buyer took possession of a home on October 1, that buyer would be responsible for 25 per cent of that year’s taxes. If the seller has paid property taxes in full for the year when the transaction takes place, the buyer must reimburse the seller. If the property taxes have not been paid when the transaction takes place, the seller must reimburse the buyer for the percentage of the tax for which he or she is responsible.
The median assessment for 2013 for a home in Calgary is:
- Single Residential: $410,000
- Residential Condominium: $250,000
Given that the current tax rate applied by the City of Calgary is 0.0063221 per cent, that means that these homeowners will each pay about $65 and $40 for month, respectively.
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