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Property Taxes

Each year, Town Council approves the budget needed to support Town services. Municipal property taxes are a main source of revenue that municipalities use to pay for those services.

To determine the amount of revenue required from property taxes, the Town takes the overall expenses and subtracts all other sources of revenue such as license fees, permits, user fees and provincial grants. The amount that’s left is what needs to be raised through municipal property taxes.

The Municipal Tax Rate

To help make sure each property owner contributes a fair and equitable share, the Town sets a municipal tax rate each year. To calculate this, the Town uses the total amount needed in municipal property taxes and the total assessment value of all properties in Thorsby.

Here’s how the math works: Amount needed in municipal property taxes ÷ assessment value of all properties in Leduc x 1,000 = municipal tax rate

For example:

Let’s say the Town needs to raise $30 million in municipal property taxes in order to provide all the services that have been approved in the annual budget, and the total assessment value of all the properties in Thorsby is $4 billion. Using the math above, we know: $30 million ÷ $4 billion x 1,000 = 7.500. Therefore, 7.500 is the municipal tax rate that will be used to help calculate what each property owner is required to contribute in property tax.

This means that the if the amount needed to be raised in municipal property taxes changes, or the total assessment value of all properties in Thorsby goes up or down, the municipal tax rate will also change.

Calculating Your Property Taxes

The municipal tax rate is a big factor in calculating property taxes, but it’s not the only one. It’s important to understand that your individual property assessment also plays an important role. That’s because the Town uses the municipal tax rate and your individual property assessment to calculate what you are required to contribute in municipal property taxes.

Here’s how the math works: Your individual property assessment x the municipal tax rate ÷ 1,000 = your property tax total

For example:

Meet Matt. Matt owns a home in Thorsby and this year his home is assessed at $345,000. The municipal tax rate is 12.000. Using the math above, we know: $345,000 x 12.000 ÷ 1,000 = $4,140. Therefore, Matt will contribute $4,140 in property tax this year.

Matt’s neighbour Rachel owns a home in Thorsby and this year her home is assessed at $350,000. That’s more than Matt’s house. The municipal tax rate is still 12.000. Using the math above, we know: $350,000 x 12.000 ÷ 1,000 = $4,200. Therefore, Rachel will contribute $4,200 in property tax this year. That’s more than Matt because her property assessment is higher.

The municipal tax rate gets a lot of attention, whether it increases, decreases or stays the same each year. But, no matter what happens with the tax rate, your property tax bill could fluctuate – because your property assessment most likely has changed due to market value changes from year to year. That’s why the impact of the municipal tax rate on your bill may be different from your neighbours; your property assessment is likely different from theirs.

The following main factors can change from year-to-year and each one impacts what you are required to contribute in property taxes:

  • The total amount needed in municipal property taxes to pay for Town services;
  • The total assessment value of properties in Thorsby;
  • The municipal tax rate;
  • Your individual property assessment value;
  • Provincial education taxes; and
  • Police funding


Your property tax bill will also include a line item for education taxes and the cost of police. These are collected by the Town on behalf of the province, and are not managed by the Town.

To calculate your property taxes, use our built-in property tax calculator tool.