Property tax guides
Assessed value vs market value
An assessed value is an assessor's estimate of what a property would have sold for on a fixed valuation date, made for property tax purposes. It often differs from today's market price because the valuation date is in the past, because it is a mass appraisal rather than an appraisal of one sale, and because some provinces tax only part of it.
Do renters pay property tax?
Tenants in Canada generally do not receive or owe a property tax bill; the owner does, and the cost is built into rent. Because of that, Ontario reduces rents automatically when a landlord's tax falls by more than 2.49%, and Ontario, Manitoba and Quebec credits are open to renters.
Education property tax in Canada
Education property tax is the part of a property tax bill that helps fund schools, and in most provinces the provincial government sets it. Some provinces use one rate, some set rates by school district or require a contribution from each municipality, and a few have no separate education tax.
How property tax is calculated in Canada
In every province, annual property tax is the assessed value of a property multiplied by the tax rates that apply to it, plus any flat charges. The rates come from budgets: a council divides the revenue it needs from property tax by the total assessment in the municipality, and the province adds an education or provincial rate in most places.
How to pay property tax
Property tax is paid to the office that sent the bill, usually the municipality, by online banking, mail, in person or a pre-authorized monthly plan. Due dates and late penalties are set locally, and they differ widely between cities.
How to read your property tax bill
A property tax bill shows the assessed value of a property, the rates applied to it for municipal and education purposes, any credits, and the due dates. Layouts differ by municipality, but most bills share the same parts, and in some provinces the year's tax is split into an interim and a final bill.
Late property tax penalties
Late property tax is charged a penalty or interest set by each municipality within provincial limits, from Ontario's 1.25% caps to Yukon's statutory 10% penalty. Taxes left unpaid at year-end become arrears, which stay with the property and can eventually lead to a tax sale.
Mill rates explained
A mill rate is a property tax rate expressed in mills, where one mill is one-tenth of a cent, or $1 of tax for every $1,000 of assessment. Canadian municipalities publish rates in mills, as percentages, or in dollars per $100 or per $1,000, and all of them convert to one another.
Property tax adjustment at closing
When a home is sold part-way through the year, the lawyer or notary splits that year's property tax between seller and buyer on the statement of adjustments. The city keeps billing the property, not the person, so unpaid tax stays with the property after the sale.
Property tax help for seniors
Seniors' property tax help in Canada comes as grants and rebates, credits claimed on the income tax return, deferral loans and some city programs, and every province sets its own rules. Most programs start at age 65 and many have income limits, principal-residence rules and yearly application deadlines.
Supplementary property tax bills
A supplementary property tax bill charges tax on value that was not on the assessment roll when the annual bill went out, usually new construction, an improvement or a change of use. It is calculated at the normal rates for the part of the year after the change, and some provinces let it reach back into earlier years.
What is property tax?
Property tax is a yearly levy on real estate, worked out by multiplying a property's assessed value by tax rates for its property class. Municipalities set most of the rate to pay for local services, and in most provinces the provincial government adds an education or school portion.