Property Taxes: What You Need To Know
Tuesday Jun 21st, 2022
Property tax rates are often an overlooked expense during the home-buying process that catches many off guard. Here’s some information that we thought would help give you a better understanding of how they work, what they’re used for and how they will affect you as a homeowner.
Property tax is a levy based on an assessed value of property. They pay for the things we use everyday. This includes the building of roads, transit, libraries, emergency services, waste & water treatment & garbage & snow removal and much more.
Property taxes are calculated using the Current Value Assessment of a property, as determined by the Municipal Property Assessment Corporation (MPAC), and multiplying it by the combined municipal and education tax rates for the applicable class of property.
Toronto property tax is based on the assessed value of your home. Every four years, the Municipal Assessment Corporation (MPAC) conducts an evaluation of properties all over Ontario and submits assessed values for each of them. This assessed value can differ significantly from the market value of your property.
The municipality you live in is responsible for preparing your property tax bill. The municipality will send you a tax bill annually. The 2022 final property tax bills were mailed to property owners between May 25 and June 15 of this year.
Many financial institutions allow you to include your property taxes with your mortgage payment. The bank then holds that money in a separate tax account and when your payment is due, they remit it on your behalf.
According to a Zoocasa report the five cities with the lowest property tax rates in 2021 were all located within the Greater Toronto Area. Toronto has lower property taxes than most other municipalities in the GTHA. The city has instead balanced its books thanks to proceeds from the Municipal Land Transfer Tax.
If you’d like to find out more about property taxes please feel free to get in touch.
This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel, financial representative, and/or insurance representative.