🏠 What Are Property Taxes?
Property taxes are annual fees paid by property owners to their local municipality. These taxes help fund essential services such as garbage collection, snow removal, emergency services, road maintenance, schools, and public transit.
In Ontario, property taxes are based on two key factors:
- The assessed value of your home
- The municipal tax rate in your area
🧮 How Are Property Taxes Calculated?
The basic formula for calculating property taxes in Ontario is:
Assessed Value of Property × Property Tax Rate = Property Taxes Owed
1. Assessed Value (Determined by MPAC)
The Municipal Property Assessment Corporation (MPAC) is responsible for assessing the value of every property in Ontario.
They evaluate:
- Location
- Size
- Lot dimensions
- Age of the home
- Recent renovations
- Comparable nearby sales
MPAC updates assessments every few years (the most recent being based on 2016 values, due to pandemic delays). You can find your current assessed value on your Property Assessment Notice or tax bill.
2. Municipal Tax Rate
Each municipality sets its own tax rate, usually expressed as a percentage. It often includes:
- Local municipal tax
- Education tax
- Special levies (if applicable)
For example:
If your home is assessed at $600,000 and your local tax rate is 1.1%, your annual property tax would be:
$600,000 × 0.011 = $6,600
Tax rates vary from city to city. Toronto, for instance, typically has lower rates but higher property values, while smaller towns may have higher rates on lower-priced homes.
🏘️ Examples of 2025 Residential Tax Rates (Estimated)
| City | Tax Rate | Property Value | Tax Amount |
|---|---|---|---|
| Toronto | 0.66% | $800,000 | $5,280 |
| Hamilton | 1.18% | $600,000 | $7,080 |
| Ottawa | 1.06% | $650,000 | $6,890 |
| Windsor | 1.85% | $400,000 | $7,400 |
Note: These are estimated rates and may change slightly year-to-year.
⚠️ What If You’re Behind On Property Taxes?
Falling behind on property taxes in Ontario can lead to interest penalties and, in extreme cases, municipal tax sales, where your home could be sold to recover the debt.
If you’re struggling with payments—or own a vacant, unwanted property—SLG Home Buyer can help you sell fast, with or without the tax debt paid off. We specialize in helping owners exit burdensome properties quickly and fairly.