Education taxes are a portion of the overall property tax collected by towns and cities in Alberta, specifically designated to fund the K-12 education system. They are one of two main revenue sources for education funding, the other being general provincial revenues. This two-stream approach provides stability for education funding. Education property taxes, alongside general provincial revenues, form the financial foundation for Alberta’s K-12 education system.
Each year, the province calculates the amount every municipality must contribute to the public education system based on property assessment values. Municipalities then collect the education property tax from property owners and forward it to the province for appropriate use.
Reports from the Provincial Government state that Budget 2025 will see an increase in education property tax rates after being frozen in 2024-25. As a result, the total provincial education property tax requisition that the City of Chestermere pays is expected to rise from $13,370,026 to $17,299,728, or approximately 29%. Because of this, municipalities across Alberta are generally facing higher education property tax requisitions in 2025 compared to 2024, with the percentage of increase varying considerably depending on the type and location of the municipality and the category of property.
| 2025 Preliminary Rates | Residential | Farm Land | Non Residential | Residential Vacant |
| Municipal Tax Rate | 3.248244 | 3.248244 | 7.238802 | 7.64662 |
| Education Tax | 2.326731 | 2.326731 | 2.73302 | 2.32673 |
| Total Tax | 5.574975 | 5.574975 | 10.239455 | 9.97335 |
According to the preliminary 2025 rates, on a residential home assessed at $780,000, a resident would pay approximately 5.6% of the home value in Residential Property Taxes. Based on preliminary rates, 2.3% would be directed to the Province for Education Taxes, or approximately $1,814.
When compared with a home valued at $700,000 in 2024, a resident would pay approximately 5.4% of the home value in Residential Property Taxes. According to 2024 Rates, 2.1% would be directed to the province, or approximately $1,492.
Alberta’s education system plays a crucial role in shaping a skilled workforce, driving economic growth, and fostering the social well-being of individuals and the province as a whole. It serves as a cornerstone for personal and collective prosperity, benefiting all Albertans—regardless of age, marital status, or parental responsibilities.
For additional information, please review the Letter from the Minster of Municipal Affairs
Click here for the Property Tax Comparison Report
Click here for Education Property Tax Fact Sheet