The City of Red Deer recently sent out 2025 property tax assessment notices, reflecting the updated assessed value of your property. You may have noticed a significant increase in your assessed value this year.
The Good News
Your property actually has increased in value! Over the past year, Red Deer has seen rising prices due to increased demand and limited housing supply. For example, the average sale price in Red Deer was $350,000 in January 2024 and has risen to $390,000 as of this January.
What Does This Mean for Your Taxes?
While an increase in assessed value may suggest higher taxes, your actual tax amount won’t be finalized until the city approves the new operating budget in April. Once the budget is set, the new mill rate will determine how much you owe.
Are Property Assessments Accurate?
It’s important to note that the City’s assessed value doesn’t always match your property’s real market value. Homes often sell for significantly more or less than their assessed values, and we’ve seen assessments off by as much as $100,000 or more in the past.
Some Facts:
• Assessments are based on sale values as of July 2024.
• They use a basic formula that averages values within your neighbourhood, adjusting individual properties for things like age, lot size, building size, permit values, and permits for renovations or additional development done after construction was completed.
• While the city has access to MLS data, their methods and info may not reflect the current market accurately (given that their assessments are based on values from over 6 months ago).
What If Your Assessment Feels Off?
• If your assessed value is lower than your home’s actual market value: Great news! You’re paying less tax than you probably should be. The lower assessed value won’t affect the actual resale value if you were going to sell your home.
• If your assessed value is higher than your home’s market value: You have the option to appeal, and we can assist you in that process. The deadline to submit an appeal is March 18, 2025.
Curious About Your Home’s Current Market Value?
If you’d like to know what your home is truly worth in today’s market, feel free to reach out. We’re happy to provide a personalized evaluation for your home.
More Information:
For additional details, visit the City of Red Deer Tax Info & FAQ.
