LAKELAND - Residents across the Lakeland region will likely see an increase in their property taxes this year, due to a provincial education tax hike.
The City of Cold Lake recently released information about the impact of the tax increase, which is expected to affect homeowners and businesses alike.
The Government of Alberta has announced a 6.25 per cent increase in the education property tax. In 2024, the tax was set at $2.56 per $1,000 of residential assessment, and is increasing to $2.72 per $1,000 in 2025. Commercial and farmland properties will also see an increase from $3.76 per $1,000 to $4 per $1,000, according to the City of Cold Lake.
City of Cold Lake
City of Cold Lake Mayor Craig Copeland acknowledged financial challenges for residents, noting the city kept its budget increases low, but the provincial tax hike may still be unexpected.
The City of Cold Lake's total education tax requisition will increase from $6,584,170 to $7,459,208, adding an extra $875,038 to the tax burden. For an average homeowner, this translates to an annual increase of approximately $62.75.
“It’s important for residents to understand that council doesn’t set and determine the entire amount of a resident’s property tax,” Copeland explained. “There are other portions beyond our control, like the mill rate and the education property tax. And that this money goes back to the Government of Alberta, not into the City’s budget.”
Copeland added, “It’s sort of unfortunate, so everybody, whether you’re a resident or a business, you’re paying I think it’s 31 per cent or 32 per cent of operating education in Alberta . . . The province has increased the percentage of what the ratepayers are going to be paying and so it’s sort of passed on to the residents and the business community.”
Copeland said residents who are upset should contact their MLA, as the city only collects and forwards the tax to the province.
Lac La Biche County
Hafsah Moghrabi, general manager of corporate services for Lac La Biche County, outlined the financial impact on local ratepayers in that region.
“Lac La Biche County residents will see an increase on their tax bills this year, as the provincial education tax is directly tied to property assessment values. In 2025, Lac La Biche County will see an increase in assessment values due to new development and increased inflation, which is outside of the County’s control. Administration will be bringing a comprehensive report to a regular council meeting in the near future to further detail the increases.”
Moghrabi added that an average home in Lac La Biche County, valued at $450,000, will see an estimated $86 increase in property taxes due to the education tax hike.
County of St. Paul
Jason Wallsmith, CAO of the County of St. Paul, provided details on the tax increase for County ratepayers.
“The 2025 Education Property Tax Requisition will increase from $4,391,327 to $4,843,307, totaling an extra $451,980. The Education Property Tax supports the operating costs for school boards in the province. As education benefits, or has benefitted, all Albertans, even those without children in school pay this tax, supporting education for the next generations of students.”
Wallsmith said the County is still finalizing its budget and cannot yet determine the direct impact on individual ratepayers.
MD of Bonnyville
Susan Walker, General Manager of Corporate Services for the MD of Bonnyville, indicated that while final calculations are pending, the education tax requisition for farm and residential properties has increased along with non-residential properties.
“The estimated calculations have not yet been completed but are scheduled to be presented during the March 25, regular meeting of council,” Walker stated. “What the MD does know is that the requisition for farm and residential properties has increased by 13 per cent over 2024, while the non-residential increase sits at 10 per cent. This does not include any changes (increase or decrease) in property assessment values.”
She advised residents to check their 2025 Property and Assessment Notices, typically sent out at the end of May, to see the exact impact on their taxes.
To learn more about the education property tax, visit www.alberta.ca/education-property-tax.
