Canmore’s Livability Tax (often described as a vacancy tax) has been discussed for years, and it continues to evolve. If you own property in Canmore, are considering buying a second home, or you simply want to understand where things stand heading into 2026, this provides an overview of the history and current status.
What is the Livability Tax and why was it introduced?
The Town’s stated goal is to support housing affordability and non-market housing by applying a higher residential tax rate to homes that are not used as a primary residence. The idea is to better align property taxation with local housing pressures, while generating a dedicated revenue stream for housing initiatives.
The timeline so far
2024: The framework is set
The Town established a structure to differentiate primary residences from non-primary residences for tax purposes.
2025: Court challenge and timing shift
A court challenge tested whether the Town could implement this approach. The key takeaway for most owners was simple: the Town’s authority to structure the tax was upheld, but the program did not proceed for the 2025 tax year. The implementation target shifted to 2026.
January 2026: The Alberta exemption discussion
The newest development is the Town’s discussion about potentially exempting Alberta residents from the higher non-primary rate. If adopted, the higher rate would be more narrowly focused on non-Albertan-owned second homes. This is still subject to Council decisions and related provincial direction.
Declaration stats (reported)
Declaration data gives a clearer picture of how many properties may be affected:
- 6,935 declarations were submitted (reported).
- Of those, roughly 90% were declared primary residences and 10% were declared non-primary (reported).
- About 1,129 properties reportedly did not declare and may be assigned non-primary status.
- Among non-primary declarations, about 56.7% are reportedly owned by Albertans, and 43.3% by non-Albertans.
These figures matter because they influence both the scope of the tax and the potential revenue available for housing initiatives.
Budget context. Administration costs
One detail that often gets missed is the cost to run a program like this. Administration costs have been estimated at approximately:
- $920,000 in 2026
- $820,000 in 2027
What happens next
Here are the practical next steps to watch:
- Council decisions on exemptions and final program design (especially the Alberta exemption discussion).
- Timing tied to the 2026 property tax setting process. Decisions are expected before 2026 tax rates are set in May.
- Updates from the Town’s official Livability Tax communications. Those will be the final word on what is implemented, who is exempt, and how it will be applied.
What this could mean for buyers and sellers in Canmore
- Second-home buyers: property tax assumptions may depend on residency and on whether the exemption path is approved.
- Sellers: some buyers will ask about projected carrying costs earlier in the process. Being prepared with accurate, current information helps.
- Local market dynamics: whenever carrying costs shift, buyer behaviour can shift too, especially for discretionary and lifestyle purchases.
Where to follow updates
For official updates, watch the Town’s Livability Tax updates page.
For summaries as new decisions come out, follow me on Instagram: @MountainHomesInCanmore.
Questions? Please reach out.