Calgary’s 2026 Budget Preview: Necessary Investments or Another Hit to Homeowners?

Calgary’s latest budget preview is a classic example of the balancing act city hall must perform trying to invest in critical services while keeping taxes palatable. On paper, a 3.6 per cent overall property tax hike sounds manageable. But look closer and the story changes, especially for homeowners. Residential properties are facing a 5.4 per cent increase compared to just 1.3 per cent for commercial properties, largely because of the ongoing shift in the tax burden from businesses to residents.

City officials, including Mayor Jyoti Gondek, insist these increases are justified, pointing to more than $318 million in new spending for housing, transit, public safety, and infrastructure. Affordable housing alone gets a $78 million boost, with another $68 million earmarked for infrastructure upgrades. Public safety also features prominently, with a proposed $61 million increase and a one-time $28 million infusion for the Calgary Police Service. These are areas most Calgarians agree deserve attention.

Still, it’s hard to ignore the pinch for homeowners already grappling with rising costs. Water, wastewater, and stormwater fees are set to climb by nearly 4 per cent, and even garbage and recycling cart fees are inching up. Transit fares and recreation fees will also rise. Every small percentage adds up, especially for families on fixed or modest incomes.

The city argues it is “balancing affordability with the demands of a growing city,” but many residents may feel that balance tipping against them. The tax shift from non-residential to residential is particularly contentious. The rationale is to keep the commercial-to-residential tax ratio below the provincial maximum of 5:1, but it leaves homeowners shouldering more of the load.

Critics like Ward 1 Coun. Sonya Sharp have already seized on gaps in the plan, pointing out that some promised infrastructure projects didn’t make the cut due to “lack of capital capacity.” That raises questions about priorities. If new communities that were supposedly shovel-ready are sidelined, is the city truly planning for growth—or just patching holes?

Ultimately, the 2026 budget will be decided by the next city council after the October election. Whoever wins will have to decide whether to endorse this careful but costly plan or send administration back to the drawing board. Investments in housing, transit, and public safety are vital, but the city must be mindful: Calgarians can only stretch their wallets so far.