Q: When are property taxes due, and how are they paid?
Posted by: Michael Bladon / Category: Questions and AnswersA: Another question reviewed on a recent episode of Calgary Home Podcast. The question simply was, when are property taxes due and how do you pay them.
In Calgary, municipal property taxes are due to be paid by June 30th of each year. The payment on June 30th covers the entire calendar year, so you pay in June to cover January to June in arrears and July to December in advance. We also have the option of joining the TIPP program, which is the Tax Installment Payment Plan. Essentially this converts your once a year tax bill into a monthly bill.
What you need to be aware of when buying a home is that if the seller has paid the taxes for the entire year and you purchase after June 30th, there will be an adjustment where you’ll need to reimburse the seller for the taxes they have pre-paid for the time you’ll be living in the home. For example if you took possession of a home at the first of the month, on October 1st and the taxes were pre-paid for the entire year, part of the adjustments due on closing would be for approximately ¼ of the annual taxes to cover the three months from October to December.