City Council approved a 6.1 per cent property tax increase for 2025. While officials argue that the increase is necessary to maintain vital services, many Edmontonians are questioning the fairness of the hike, especially during a time of rising costs of living.
The decision will see the average homeowner paying nearly $3,500 in city property taxes next year, an increase of approximately $200 from 2024. Though the tax hike is lower than the initially proposed 8.1 per cent, it has still left many residents worried about its long-term impact on the economy.
Mayor Amarjeet Sohi called the decision to approve the tax increase a difficult one, but insisted it was essential to maintaining city services. However, many Edmontonians are unconvinced, arguing that the city’s spending habits and repeated tax hikes are making life increasingly unaffordable.
“You can always lower taxes, but at what cost to services?” Sohi remarked.
While homeowners will be directly impacted by the increase, renters are also set to feel the effects. Property owners are likely to pass those costs onto tenants, potentially leading to increased rent prices across the city. With inflation already squeezing household budgets and the cost of living rising rapidly, this additional financial burden could make it even harder for renters to keep up with escalating rental prices. In addition, higher rents for commercial properties could force businesses to increase prices to cover their costs or, worse, close their doors altogether. The knock-on effects of this could ripple throughout the economy, affecting local employment and further tightening the city’s economic situation.
The growing tax burden is compounded by predictions that future increases could be even steeper. If the projected 6.8 per cent increase for 2026 is realized, residents could face a series of consecutive years with significant hikes.
The 6.1 per cent tax increase is now locked in, but the debate over the city’s fiscal future is far from over. As Edmonton’s population continues to grow and the cost of living rises, it remains to be seen how much more residents will be able to shoulder before the tax burden becomes too heavy.
The ongoing debate highlights the difficult balancing act faced by city council, as they must navigate the demands of a growing city while managing the financial realities of its residents. With further tax hikes on the horizon, many Edmontonians are left wondering: how much is too much?