Ontario Property Tax Calculator 2023
Property Tax in Ontario
After you buy a house in Alberta, you will need to pay annual property tax.Property tax is a tax on land and property. It is based on the assessed value of a property. If you own a property, you will have to pay property tax. It is used to pay for city services such as police, the fire department, and public transit as well as elementary and secondary education.
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2023 Tax rates for Cities Near Toronto
| City | Final Tax Rate |
|---|---|
| Vaughan | 0.695093 % |
| Mississauga | 0.881540 % |
| Markham | 0.662708 % |
| Richmond Hill | 0.691472 % |
Property Taxes in Ontario
There are two main parts to property taxes in Ontario:
- A city tax that depends on the municipality of the property
- An education tax that is the same throughout Ontario.
Some cities may add additional taxes. For example, the City of Toronto has a City Building Fund Levy that is used for public transit and housing projects in Toronto.
2020 Education Tax Rate for Residential Properties in Ontario: 0.15300 %
Property tax rates also depend on the type of property. Common major categories are Residential, Multi-Residential, Commercial, Industrial and Farmland. There can be further categories that are defined by the municipality. Almost all homes will apply under Residential property tax rates.
Property Taxes in Ontario for a $500K MPAC Assessed Value Home*
Property Taxes of Cities in Ontario
How Property Tax Rates are Determined in Ontario
Municipal property tax rates are determined based on the budget needs of the municipality. Municipalities consider their expected spending and other revenue and use property taxes to make up for the rest. The specific property tax rate for a certain year depends on the budget of the municipality and its total assessment base (their tax base). If more tax revenue is necessary, tax rates will need to go up, and vice-versa.
The Education Property Tax rate is set by the province. Ontario sets an education property tax rate for each type of property every year. All residential properties are subject to the same tax.
Assessed Value of a Property
Property value assessments in Ontario are conducted every four years by the Municipal Property Assessment Corporation (MPAC). They conduct assessments for all types of property in Ontario ranging from residential properties to farms to commercial properties. For residential properties, they use a number of factors, including market price, to determine the assessed value of a property. While they release overviews of their valuation guidelines, there is no transparency in the assessment of a specific property.
Homeowners may find that the assessed value of their property differs significantly from its market price. There is also no way to retrieve and compare the assessed value of other properties.
Property Assessments in Ontario
Properties in Ontario are assessed every four years by the Municipal Property Assessment Corporation (MPAC). Most properties are assessed using a market value-based approach. There are three ways that MPAC uses to determine a property’s market value:
Direct Comparison Approach
Residential properties are valued under this approach. This compares the sales of similar properties in the assessment year to determine a valuation for the property. The assessed value may not equal the actual market value or sale value of a property.
Cost Approach
Unique and rarely traded properties are valued under this approach. This uses the cost of the property if someone were to rebuild it to determine a valuation for the property minus depreciation due to age or other factors. This includes the price of the land and the price of all improvements (e.g. buildings) on top of it. While this takes into account the market value of the land, it does not consider the market value of the property as a whole.
Income Approach
For properties that are dedicated to generating income like rental properties or offices, an income-based approach is used. This approach uses the income generated by the property as well as the sales price to determine its assessed value.
Property Taxes in Ontario for a $500K Fair Market Value Detached Home*
Ontario Property Value Phase-In Program
In Ontario, property assessments are conducted every four years by MPAC. Many properties may see significant changes to their assessed value from one valuation to another. To help property owners, MPAC has a Phase-In program for cases where the property valuation has increased. The difference between the two valuations is spread out between the years.
In this case, your valuation has increased by $100K. Rather than increase your valuation immediately, the Phase-In program will increase your assessed value by $25K ($100K / 4 years) every year.
2013 Valuation: $525K
2014 Valuation: $550K
2015 Valuation: $575K
2016 Valuation: $600K
If your property’s assessed value has decreased, the new value takes effect immediately.
Municipal Revenues from Property Taxes
Property taxes are the largest source of revenue for most municipalities. In the 2019 fiscal year, property taxes made up 37% of the City of Toronto’s operating budget.
| City Name | 2023 Final Tax Rate | Property Tax Page |
|---|---|---|
| Toronto | 0.666274% | |
| Ottawa | 1.169276% | |
| Mississauga | 0.881540% | |
| Brampton | 1.039311% | |
| Hamilton | 1.327000% | |
| London | 1.461166% | |
| Markham | 0.662708% | |
| Vaughan | 0.695093% | |
| Kitchener | 1.212054% | |
| Windsor | 1.939661% | |
| Oakville | 0.760437% | |
| Richmond Hill | 0.691472% | |
| Oshawa | 1.376207% | |
| Greater Sudbury | 1.649523% | |
| Barrie | 1.291176% | |
| Guelph | 1.229079% | |
| Whitby | 1.199434% | |
| Cambridge | 1.307550% | |
| St. Catharines | 1.631569% | |
| Milton | 0.733577% | |
| Kingston | 1.444608% | |
| Ajax | 1.183215% | |
| Waterloo | 1.204175% | |
| Thunder Bay | 1.708921% | |
| Brantford | 1.384690% | |
| Clarington | 1.224141% | |
| Pickering | 1.160605% | |
| Niagara Falls | 1.505063% | |
| Newmarket | 0.841254% | |
| Peterborough | 1.537656% | |
| Kawartha Lakes | 1.375913% | |
| Caledon | 0.841513% | |
| Sault Ste. Marie | 1.720655% | |
| Sarnia | 1.596488% | |
| Norfolk County | 1.418740% | |
| Halton Hills | 0.852697% | |
| Aurora | 0.803304% | |
| Welland | 1.757190% | |
| Belleville | 1.751746% | |
| North Bay | 1.664320% | |
| Whitchurch-Stouffville | 0.779250% | |
| Haldimand County | 1.262941% | |
| Cornwall | 1.774780% | |
| Georgina | 1.068849% | |
| Woodstock | 1.586913% | |
| Quinte West | 2.125359% | |
| St. Thomas | 1.621847% | |
| Timmins | 1.933103% | |
| Brant | 1.058000% | |
| East Gwillimbury | 0.821018% | |
| Orillia | 1.455684% | |
| Stratford | 1.505611% | |
| King | 0.829014% | |
| Clarence-Rockland | 1.332978% | |
| Prince Edward County | 1.154360% | |
| Thorold | 1.538049% | |
| Brockville | 1.485327% | |
| Owen Sound | 1.838271% | |
| Scugog | 1.177326% | |
| Uxbridge | 1.113236% | |
| Huntsville | 1.251480% | |
| Port Colborne | 1.944709% | |
| Kenora | Not Available | |
| Brock | 1.280766% | |
| Temiskaming Shores | 1.352420% | |
| Muskoka Lakes | Not Available | |
| Dryden | Not Available |