Are you a new homebuyer in Edmonton, Alberta? If so, do you know how much in property taxes you’ll need to pay when you close on your new home? You’ll be glad to hear that navigating this process is simpler than ever with the help of Sterling Edmonton’s Property Tax Calculator! When you close the sale of a home, the property taxes will often be prorated so that you only pay tax for the portion of the year in which you own the home.
By using this handy Property Tax Calculator, you can easily estimate the amount of property taxes you will need to pay. Simply enter the total amount of property tax and the date you’ll take possession, and our calculator will take care of the rest.
It’s important to note that this tool is designed for residential property; please keep that in mind!
Property Tax Calculator
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Amount homeowner will owe the builder at Closing
How do I know if the builder has paid the property taxes?
The City of Edmonton will send a property tax assessment notice during the spring of each year to the title owner of the property. If you haven't closed on your property, this assessment will be sent to the home builder.
The payment deadline to pay property taxes is June 30th.
This property tax estimator can help you see how much a property of a certain value is required to pay in property taxes this year: https://taxestimator.edmonton.ca/
How Property Taxes In Alberta Work
In Alberta, property taxes are set on an annual basis by each municipality. These taxes are based on the assessed value of each property and fund essential city services such as schools, police, and fire protection. As a homeowner in Edmonton, you’ll pay your property tax bill in one of two ways: directly to the city annually or monthly via pre-authorized payments.
The assessed value of a property is determined by the City’s Assessment Department and is based on several factors, including the overall condition of the home, its age, size, and features. The tax rate for each property is also determined by the city and changes from year to year.
Property assessments are different from residential to commercial to farmland. Make sure to find out what your land is classified as, as it does affect property tax rates.
What is the Property Tax Calculator and How Does it Work?
When you own a home in Edmonton, you’re required to pay property tax, based on the value of your home. There are many online calculators to help you figure out your property tax rate, but these don’t usually consider the first year when you take possession of the home.
The Sterling Homes Property Tax calculator is designed to take into account the fact that when you purchase a home, you may only be responsible for taxes from the date of possession to the end of the tax period. Our handy tool will calculate your prorated property tax amount for the current year so you can plan ahead and budget accordingly.
An Example Use Of The Property Tax Calculator
For example: if you’re buying a new home valued at $400,000, your approximate property tax for 2023 would be $3,779.00. However, let’s say you don’t take possession of the home until July 1. Using our property tax estimator, we can determine how much the builder will pay, and what the remaining amount is that you’ll owe. By entering the total amount of tax for the year and the possession date, you’ll see that the outstanding amount owing is $1,895.00.
How The Property Tax Calculator Can Benefit You
Closing the sale of a home can be a stressful experience, and if you’re buying your first home there might be many closing costs that you weren’t prepared for. With the help of our Property Tax Calculator, you can easily estimate how much property tax you’ll be responsible for. That way, you can plan and budget accordingly and avoid any unpleasant financial surprises when it’s time to move in.
The Sterling Edmonton Property Tax Calculator is a great way to help you accurately estimate how much you’ll need to pay in taxes when purchasing a home in Edmonton. With just a few simple calculations, you can have peace of mind knowing exactly what your tax obligation will be. Try out the calculator today and start planning for your new home!
Do I Pay Property Taxes When Buying A New Home?
Property taxes are handled a bit differently when buying a new home and how they are handled depends on the time of year and whether or not the annual invoice has been paid by the Builder yet.
Typically, property taxes are pro-rated and an adjustment is done at closing so the homeowner only ends up paying for the portion of the year for which they have possession of the home.
If possession is earlier in the year, the property tax bills haven’t come out yet so the builder will actually give the homeowner a credit (lowering the amount you have to pay) because later that year the homeowner will be required to pay the full invoice. They essentially pay to the homeowner, the portion for which they owe.
If possession is later in the year (once the builder has already paid the annual property taxes) the homeowner will see an adjustment that requires they bring in more money to cover their portion of the annual invoice.
How much will I need to pay?
Example 1 – Annual Property taxes = $2400 and Builder has paid the invoice (possession date Oct 1)
The adjustment will show the annual amount being broken down into days and then multiplied by the number of days the homeowner will own the home in the year:
$2400 / 365 days x 92 days = $604.93 homeowner will owe the builder at closing
92 days is determined by taking calculating how many days there are from Oct 1st to Dec 31st (31 + 30 + 31).
Example 2 – Annual Property taxes = $2400 and Builder has NOT paid the invoice (possession Feb 28th)
$2400 / 365 days x 58 days = $381.37 builder will owe the homeowner at closing
58 days is determined by calculating how many days there are from Jan 1st to Feb 27th (31 + 27).
The homeowner will then be responsible to pay the entire bill when it arrives knowing the builder has already paid them their portion.
