Alberta Seniors Property Tax Arrears and Free Debt Help

Falling behind on property taxes does not mean you lose your home tomorrow, but ignoring the problem makes it worse fast. Alberta municipalities charge steep late-payment penalties, and after enough time, the Municipal Government Act gives them the power to sell the property to recover unpaid taxes. If you are a senior homeowner with property tax arrears, you have more options than you might think — including the provincial deferral and free counselling services that can help you sort through the full picture.

Can You Defer Property Tax Arrears?

Yes. The Alberta Seniors Property Tax Deferral Program can incorporate prior-year arrears — including accumulated municipal interest and penalties — into the deferred loan balance. There is no requirement that your property tax account be current before you apply.

You still need to meet the program's eligibility requirements, including the 25% equity threshold. Total registered charges on your title (mortgage, HELOC, existing deferral caveat, and other registered monetary charges) cannot exceed 75% of the municipality's assessed value. If years of unpaid taxes and penalties have been added to your title as registered charges, they count against the equity cap.

You can apply to defer all or part of the outstanding balance, including eligible arrears and penalties. If approved, the province pays the approved loan amount directly to your municipality at the program's simple interest rate (4.45% as of April 1, 2026) — which is significantly lower than the penalty interest most municipalities charge on overdue taxes.

When Deferral Is Not Enough

The deferral handles property tax debt specifically. If your financial difficulties extend beyond property taxes — credit card debt, unpaid utilities, medical expenses, or other debts accumulating — deferring your taxes alone will not solve the underlying cash-flow problem. That is when free debt counselling becomes essential.

Money Mentors

Money Mentors is Alberta's only non-profit provider of the Orderly Payment of Debts (OPD) program under the federal Bankruptcy and Insolvency Act. They offer:

• Free financial assessments to understand your full debt picture.
• Unbiased money coaching — they do not sell financial products.
• The OPD program, which consolidates unsecured debts into a court-supervised repayment plan at fixed 5% interest.
• Budgeting help and financial education.

Contact: 1-888-294-0076 or moneymentors.ca. Financial assessments and credit counselling are free; the OPD program is a repayment plan with fixed 5% interest.

Credit Counselling Society

The Credit Counselling Society is an accredited non-profit charity serving Western Canada. They provide:

• Free initial credit counselling sessions (phone or in-person).
• Debt management plans that consolidate payments and may reduce interest rates.
• Budgeting workshops and financial education.

Contact: 1-888-527-8999 or nomoredebts.org. All initial counselling is free.

What These Services Are Not

Neither Money Mentors nor the Credit Counselling Society is a legal service. If you are facing a tax sale notice, a foreclosure proceeding, or a lis pendens on your title, you need legal advice — not just financial counselling. Legal Aid Alberta provides representation for low-income individuals who meet strict financial criteria, and the Centre for Public Legal Education Alberta (CPLEA) publishes free guides on property law and housing rights.

Getting Both Problems Under Control

If you are behind on property taxes and struggling with other debts, the practical order is:

1. Call Alberta Supports (1-877-644-9992) to ask about applying for property tax deferral — municipal penalties can continue to accrue while the application is processed.
2. Contact Money Mentors or the Credit Counselling Society for a free assessment of your full financial situation.
3. Once you have a clear picture, decide whether the deferral alone is enough or whether a broader debt management plan is needed.

For a step-by-step walkthrough of the deferral application itself, see our Alberta Seniors Property Tax Deferral guide.

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