What happens to property taxes when your buying or selling a home in Calgary?
Property taxes in Calgary are due June 30 of every month. So what happens with the taxes in your real estate transaction? When buying or selling most likely you will incur a Property Tax Adjustment in order to complete your real estate transaction.
Calgarians have several options when paying their property taxes:
- Annually, homeowners submit their payments for the full year on or before June 30th
- Monthly, using the TIPP (Tax Instalment Payment Plan)
- When you sell your house before June 30 you will have to pay for the taxes for the the time you lived in the house. For example, if you sell your home on March 01 then you are responsible to pay taxes from January 01 to March 01 of that year.
- When you sell your home after June 30 when the taxes are paid in full you will get a credit from the buyer. For example, if you sell your home on October 15 then you will be credit for the taxes paid from October 15 to December 31 of that year.
- If you are paying your property taxes monthly, then you will be responsible for paying the taxes up to the closing date. Lawyers then will credit back the amount after the possession date.
- When your buy a home before June 30 you will get a credit from the sellers for taxes because sellers didn’t pay any taxes yet. For example, if you have buy a home on April 15 then the sellers are responsible for the taxes from January 01 to April 15.
- When you buy a home after June 30 you will have to pay the sellers for the amount of property taxes paid up to that point. For example, if you buy a home on August 31 because the sellers paid for the entire year the lawyers will credit the amount from September 01 to December 31 of that year.