Calgary homeowners are getting a tax break from city hall this year.

City council voted this afternoon not to raise its tax rate to off-set a reduction in the provincial education tax. 

Council approved a 2.3 per cent property tax increase — however, after a one-time rebate is applied to tax bills, it means the average homeowner will pay $40 less tax this year versus last year.

Coun. Andre Chabot says he's pleased the option of taking the tax room vacated by the province was voted down.

“There was no specific direction from the general public saying 'you need to invest in the following things.' So being as we didn't have specific direction on where to spend the money, I think council thought it was in their best interest to give it back.”

On a couple of prior occasions, city council has voted to raise its tax rates when the province lowered the education tax. That money was targeted for things like new recreation centres and a future transit line. 

With files from Scott Dippel/CBC