Toronto continues to have the lowest property tax rates in Ontario

Written by
Erin nicole davis

Property taxes are an often overlooked expense in Ontario’s spectacular real estate markets.

Home buyers typically focus on the significant costs of home ownership: down payment, monthly mortgage cost, closing costs, and land transfer fees. Fair enough.

But property taxes can add thousands of dollars a year to the cost of your home.

Toronto-based real estate brokerage Zoocasa is once again giving property taxes a moment of glory with the release of its annual report on Ontario’s cities with the lowest and highest property tax rates.

property tax
Businessman hand calculating invoice with house model in office

In the end, we haven’t seen the same drama on the property tax front that we have seen on house prices lately; the investments of the five lowest and highest residential property tax rates remain unchanged between 2020 and 2021, and are as follows:

Municipalities with the 5 lowest residential property tax rates:

  • Toronto: 0.611013
  • Markham: 0.632908
  • Richmond Hill: 0.659549
  • Vaughan: 0.669976
  • Milton: 0.683333

Municipalities with the 5 highest residential property tax rates

  • Sudbury: 1.546783
  • North Bay: 1.568182
  • Sault Ste. Mary: 1.588067
  • Thunder Bay: 1.59108
  • Windsor: 1.818668

“Paying your taxes will be a financial obligation throughout owning your home, so it’s important to understand their impact on your household’s bottom line,” the report read.

This is especially noticeable in the current housing market in the era of the pandemic. “As many Ontarians have moved from city life to small town or country life, they may not realize that while their home is relatively less expensive, it can be matched with a higher tax rate, ”the report explains. “This is because property tax rates vary across the province, depending on the size of municipalities, council operating budgets and the value of local housing markets. “

As a result, large urban centers like Toronto may offer lower property tax rates due to a larger pool of taxpayers and higher property prices. On the other hand, smaller communities will often have higher tax rates to accommodate a smaller population and, possibly, fewer resources.

affordable cities
Windsor / Shutterstock

But the municipal tax rate is only one factor. Another item is the recent assessment of a home’s value as determined by the Municipal Property Assessment Corporation (MPAC). The amount you actually pay in tax is calculated by multiplying your city’s residential tax rate by that appraisal value, Zoocasa points out.

MPAC typically provides this assessment every four years, and the next update was scheduled for 2020; However, as part of COVID-19 tax relief efforts, they froze property valuation assessments at 2016 levels through tax year 2022 – something that residents and newly settled homeowners won’t. were certainly not complaining.

Thereafter, home valuations in Ontario could change over the next several years thanks to unprecedented growth in house prices across the province that came with the pandemic.

To see how tax rates differ across the province and how they have fluctuated from 2020, Zoocasa has compiled the 2021 property tax rates for 35 Ontario municipalities.

Residential property tax rates in 35 Ontario municipalities

1.Toronto: 0.611013

2. Markham: 0.632908

3. Richmond Hill: 0.659549

4. Vaughan: 0.669976

5. Milton: 0.683333

6. Oakville: 0.721512

7. Aurora: 0.762133

8. Burlington: 0.779583

9. New market: 0.794819

10. Halton Hills: 0.796429

11. Mississauga: 0.803063

12. Caledon: 0.805224

13. Brampton: 0.962669

14. Ottawa: 1.000000

15. Pickup: 0.080044

16. Ajax: 1.091294

17. Waterloo: 1.093399

18. Kitchener: 1.106139

19. Whitby: 1.122891

20. Guelph: 1.142609

21. Cambridge: 1.18633

22. Hamilton: 1.208567

23. Barrie: 1.218959

24. Oshawa: 1.304741

25. Niagara Falls: 1.30914

26. Orangeville: 1.333837

27. Kingston: 1.365454

28. London: 1.388283

29. Peterborough: 1.448245

30. St. Catharines: 1.455746

31. Sudbury: 1.546783

32. North Bay: 1.568182

33. Sault Ste. Mary: 1.588067

34. Thunder Bay: 1.59108 35

35. Windsor: 1.818668

Written by
Erin nicole davis

Erin Nicole Davis is a born and raised Toronto writer with a passion for the city, its urban affairs and its culture.

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