Alberta’s population is growing rapidly, and there are more people relying on their municipality to deliver essential services such as roadwork, snow clearing and transit than ever before. Being able to meet the needs of the province’s rapidly growing population is a top priority for Alberta’s government and this work begins with ensuring municipalities are well-positioned to support their residents.
To strengthen municipalities’ position in accommodating the needs of Alberta’s rapidly growing population, Budget 2025, if passed, increases Grants in Place of Taxes (GIPOT) by more than $17 million in 2025. This increase in GIPOT will provide municipalities with a stable and reliable source of funding to help them deliver the essential services which their residents depend on.
“We heard clearly from municipalities that they need more stable funding to deliver local services effectively while avoiding property tax increases. Boosting GIPOT shows how our government is doing its part to help our municipal partners fund the municipal services their residents rely on.”
“Municipalities across Alberta will get more funding from the province as part of this change. It means stable and reliable funding to provide services, while their residents pay less in income taxes thanks to Budget 2025.”
As with all provinces in Canada, eligible properties belonging to provincial governments are exempt from municipal taxes. To account for this, municipalities in Alberta are paid a discretionary grant, rather than taxes, that would be applicable to provincial properties within their boundaries. These grants provide municipalities with a stable and reliable source of revenue that they can rely on while developing municipal budgets and allocating funding to municipal services and programs.
"Alberta Municipalities and its 264 member communities are pleased to see this issue has been addressed in Budget 2025. We appreciate that the provincial government heard and responded to our sustained collective call for a return to full GIPOT funding as quickly as possible."
Through Budget 2025, funding for GIPOT is increasing from $38 million to more than $55 million, covering 75 per cent of the municipal property tax value of eligible provincial properties in 2025. In 2026, GIPOT will increase again to cover 100 per cent of the amount that would be paid if the properties were taxable, raising the total amount of funding for municipalities to be projected at over $75 million.
“The GIPOT funding increase announced in Budget 2025 is a step in the right direction for mid-sized cities across the province. As we collectively look to find ways to strengthen and foster resiliency in our municipalities, this increase helps us continue to make critical investments that support residents in growing communities.”
“The Rural Municipalities of Alberta appreciates the Government of Alberta’s increase in Grants in Place of Taxes in Budget 2025 and a commitment to fully restore funding in 2026-2027. It’s essential that the province works in partnership with all municipalities to ensure that they have the resources to deliver the essential services their residents and business communities rely on.”
Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick facts
- GIPOT is paid to 167 municipalities across the province in urban and rural areas for provincially-owned properties such as the Alberta Legislature building, remand centres, court houses and other provincial administration buildings.
- GIPOT total funding amount:
- 2025: $55.3 million
- 2026: $75.3 million (projected)
- 2027: $79.3 million (projected)
Related information
- For more information on GIPOT, visit www.alberta.ca/grants-in-place-of-taxes-program