Tax in Calgary is about to shift in ways that could catch both residents and small business owners off guard if they’re not paying close attention. While most tax changes trickle in with a press release and a few dry policy updates, 2026 is shaping up to be a year of big moves. Some are already confirmed. Others are sitting in legislation, waiting to take effect. But one thing is clear. The way money moves through Calgary is about to feel different.
These changes touch on everything from carbon levies to property reassessments. There are also updates to federal and provincial tax credits that could affect how much people take home each month. For Calgary’s entrepreneurs and gig workers, there are new rules coming that could shake up cash flow, invoicing, and what’s claimable at tax time.
The Alberta government has been clear about wanting to reduce red tape. At the same time, the federal government has quietly introduced changes that shift the burden toward provinces. It creates a bit of a squeeze. People who run small shops, trades, or freelance gigs may find themselves navigating more complexity, not less.
TL;DR
- What Alberta’s carbon tax exit means for local households
- Why property tax hikes might hit harder in Calgary than elsewhere
- Key changes to GST rules for small business owners
- Federal tax credit updates that could shrink refunds
- What gig workers need to track now to avoid penalties later
- A look at who benefits and who pays more under the new rules
What Alberta’s carbon levy rollback actually means
The Alberta government has been fighting the federal carbon tax in court and in public. By 2026, the province is expected to fully withdraw from the federal backstop program. This opens up a lot of questions for Calgary households and small businesses.
The federal carbon tax applies to fuels like gasoline and natural gas. While rebates exist, many Calgary residents say those payments haven’t kept up with rising costs. With Alberta stepping out, the province could introduce its own program, possibly with lower rates or more targeted rebates.
For homeowners, this could impact heating bills. Businesses using delivery fleets or heavy machinery might see costs drop if Alberta’s replacement program is less aggressive. But there’s still a wildcard. If Alberta doesn’t meet federal emissions targets, penalties could be introduced in other ways.
Some economists suggest a shift from broad fuel taxes to sector-specific levies. That could hit construction and trucking harder than retail or tech. Business owners who depend on transportation might need to factor this into 2026 planning.
Why Calgary property tax bills could spike again
Calgary’s property taxes have been creeping up for years. Part of this is due to lower downtown office occupancy, which shifts more of the tax load onto homes and small commercial properties. The 2026 reassessment is expected to lock in some major changes.
City officials are working on a new model that could rebalance how different property classes are taxed. For example, large apartment buildings might take on more of the tax weight, while small retail shops see some relief. But the timing is tricky.
As Calgary’s real estate market keeps rising, many homeowners are likely to see a jump in assessed value. This alone can push tax bills higher, even if mill rates stay the same. For small landlords and condo owners, that could mean tighter margins.
On the commercial side, more business properties will be reassessed using a market-based model. For businesses with long leases or older buildings, this could mean significant increases in tax liability. Landlords may pass these hikes on to tenants.
New GST thresholds and filing rules to watch
The federal government is updating GST rules that affect thousands of Calgary entrepreneurs. Starting January 2026, the small supplier threshold will increase from $30,000 to $50,000 in gross revenue. That gives many side hustlers and new businesses a bit more breathing room.
However, there’s also a change in filing rules. Businesses that make over $60,000 will be required to file GST returns quarterly instead of annually. This creates new admin work and potential cash flow issues if businesses aren’t collecting GST properly throughout the year.
There’s also been a quiet change in how GST is calculated on digital services and products. Platforms like Shopify, Etsy, and even ride-share apps will be required to collect and remit GST more actively. Calgary creators and gig workers selling through these channels may need to revisit how they invoice or price their products.
Accountants in Calgary are already flagging this as a common area for audits. Many businesses forget to update their GST filings when they cross the new threshold, which can trigger penalties and interest.
Federal tax credits are getting a quiet trim
Several federal tax credits are being adjusted or phased out completely by 2026. The Canada Workers Benefit (CWB), which has supported low-income earners, is being recalibrated to target fewer people. This could shrink refunds for many hourly workers and gig contractors in Calgary.
Childcare tax credits are also changing. While the federal government promises to expand access to low-cost daycare, the actual tax credit for childcare expenses is being capped more aggressively. For two-parent households, this could mean hundreds of dollars less in refunds next spring.
The Climate Action Incentive Payment (CAIP), which returns carbon tax revenue to households, will no longer apply to Alberta if the province exits the federal carbon system. Unless Alberta replaces it with a similar rebate, households could see their quarterly payment disappear entirely.
These changes won’t hit everyone the same way. But for low and middle-income families in Calgary, the loss of these credits may be felt more clearly in day-to-day budgeting.
Why Calgary gig workers should brace for stricter audits
The CRA is beefing up its digital tools, and gig workers are squarely in their sights. By 2026, more automated flagging will be in place to catch underreporting on platforms like Uber, DoorDash, and Upwork.
For Calgary gig workers, this means a tighter paper trail. Every job, every payout, and every expense will need to be properly logged. The CRA is also working with digital platforms directly, which means income reports will be shared whether a worker submits them or not.
Another shift involves vehicle and home office claims. Starting in 2026, stricter rules will apply to how these deductions are calculated. For example, using a personal car for delivery gigs will require more detailed mileage logs. Home office claims will need square footage breakdowns, not just rough estimates.
Accountants say the biggest audit triggers come from mismatches between declared income and platform records. Gig workers who rely on multiple apps or freelance contracts should consider using expense tracking tools now to stay ahead of the curve.
Winners, losers, and what’s still unknown
Every tax change creates a ripple. Some people benefit. Others pay more. In Calgary, the mix of federal and provincial changes is likely to split households and small businesses into different categories.
Homeowners with rising property values might see tax hikes even if their income stays the same. Renters could be insulated for now, but if landlords face higher taxes, those costs may get passed on. Freelancers and gig workers could lose out on tax credits and face more reporting rules.
At the same time, businesses under the new GST threshold might enjoy some relief. Those switching to quarterly filing will have better control over cash flow, even if it adds admin work.
The biggest unknowns still come from the Alberta government. If a new carbon rebate or tax credit replaces the federal program, that could change the equation again. But for now, many Calgary residents are preparing for fewer credits, more reporting, and rising property taxes.
Key Takeaways
- Alberta is exiting the federal carbon tax system, which may lower fuel costs but could also end carbon rebates for residents
- Calgary’s 2026 property reassessment could raise tax bills for both homeowners and small business owners
- GST thresholds are rising, but businesses making over $60,000 will need to file more often, not less
- Several federal tax credits are shrinking or disappearing, including childcare and climate rebates
- Gig workers should expect more audits and tighter rules around income tracking and expense claims
Contact us if you need help navigating these changes or preparing your business for the 2026 tax year.