How property tax is calculated in Canada

The core calculation is the same across Canada: assessed value × tax rate = property tax. Ontario's Ministry of Finance describes it this way: property taxes are calculated using the assessed value as determined by MPAC "and multiplying it by the combined municipal tax rate and education property tax rates for the applicable class of property."

Calgary puts its version as a formula: "Total property tax amount due = (Assessment x City's tax rate) + (Assessment x Province tax rate)". Montréal says the same in French: taxes are generally calculated by multiplying the tax base ("la base d'imposition") by the tax rates ("les taux de taxation").

What changes from province to province is the detail around those two numbers: who sets the assessed value and as of which date, whether the full value is taxed, how the rate is written (a percentage, mills, or dollars per $100), and which other levies are added. The mill rates guide covers rate formats, and assessed value vs market value covers the value side.

Rates are worked backwards from a budget. Calgary explains that Council approves a budget, then the City "takes the overall expenditure and subtracts all other sources of revenue such as licence fees, permits, user fees and provincial grants. The balance is the total revenue required by The City from property tax." Its formula is:

City tax rate = Total revenue required by The City from property tax ÷ Total assessment

For 2026, Calgary lists residential tax revenue required of $1,378,401,552 and total residential taxable assessment of $354,290,225,719, giving a City rate of 0.0038906. The provincial rate of 0.0027593 is added for a total residential rate of 0.0066499.

Saskatchewan's government gives the same logic in mills: council sets the uniform mill rate "by dividing the amount of taxation revenue it requires by the total taxable assessment, and multiplying that number by 1,000." Its example: $342,000 needed from a taxable assessment of $34,200,000 gives 10.0 mills.

Because the rate depends on the total assessment, the rate goes down when values across the municipality rise, and up when they fall, for the same revenue.

A bill usually combines several rates, each set by a different body.

Municipal rate. Set by council. In two-tier Ontario municipalities, "a component of the rate is set by the upper-tier and a component is set by the lower-tier municipality" (Ontario Ministry of Finance).

Education or provincial rate. In Ontario, the Province sets it by regulation: "For 2026, the tax rate for school purposes for residential property is prescribed as 0.153 per cent of the assessed value of the property" (O. Reg. 400/98). In Alberta, "The province calculates the local education or provincial tax rate for each municipality" (City of Calgary).

Other levies. Toronto's 2026 residential total of 0.767311% is the City rate (0.605295%), the education rate (0.153000%) and the City Building Fund levy (0.009016%). In British Columbia, municipalities may also collect taxes on behalf of bodies such as regional districts, regional hospital districts, TransLink and BC Assessment (Government of B.C.). Halifax adds area rates that apply only in mapped areas, such as the 2026/27 residential local transit rate ($0.095 per $100 of assessed value) and fire protection hydrant rate ($0.014 per $100).

The rate also depends on the property class. Calgary's 2026 total rate is 0.0066499 for residential property and 0.0221488 for non-residential property.

Toronto (rate as a percentage). The City's own example: "Estimated property tax = assessed value x total residential tax rate = 692,140 x 0.767311% =$5,311 (numbers rounded)". See Toronto property tax.

Calgary (rate per dollar of assessment). A home assessed at $500,000 × 0.0066499 = $3,324.95, of which $1,945.30 is the City share (× 0.0038906) and $1,379.65 the provincial share (× 0.0027593). See Calgary.

Regina (mills on a taxable assessment). Regina's formula is: Taxable Assessment = Assessed Value × Provincial Percentage; Municipal Levy = Taxable Assessment × Municipal Mill Rate × Mill Rate Factor ÷ 1000; the library levy uses the same factor; School Levy = Taxable Assessment × School Mill Rate ÷ 1000. Using the 2026 residential figures (80%, 12.25600 municipal mills, 1.08613 library mills, 4.27000 school mills, factor 0.88032), a home assessed at $300,000 has a taxable assessment of $240,000 and pays $2,589.41 + $229.47 + $1,024.80 = $3,843.68. See Regina.

These are calculations on official rates for illustration. Actual bills can include credits, grants and flat charges.

The rate is not always applied to the full assessed value.

A percentage of value. In Saskatchewan, "The provincial percentage is a factor set by the Province of Saskatchewan to adjust the assessment used as the basis for calculating property tax" (City of Regina). For the 2025-2028 property tax years, the Province sets it at 80 per cent for residential, multi-unit residential and seasonal residential property (Government of Saskatchewan).

Phase-in. Toronto calculates its bills using "the current year phased-in property assessment value" (City of Toronto). Montréal spreads the change in value from a new roll over 3 years: "un tiers de cette variation est appliqué chaque année sur votre ancienne valeur." In its example, a home valued at 560 000 $ on the 2023-2025 roll and 620 000 $ on the 2026-2028 roll is taxed on 580 000 $ in 2026, 600 000 $ in 2027 and 620 000 $ in 2028.

Tax tools. Saskatchewan councils can use "mill rate factors, minimum tax, base tax and tax phase-in", which "may only be applied to municipal property taxes." With a minimum tax, the municipal tax is the minimum tax or the tax calculated from value, whichever is greater.

Nova Scotia's Capped Assessment Program "places a 'cap' on the amount that the taxable assessment for eligible residential property can increase year over year" (PVSC); see assessment in Nova Scotia.

Not necessarily. BC Assessment states: "It is important to understand that changes in property assessments do not automatically translate into a corresponding change in property taxes ... how your assessment changes relative to the average change in your community is what may affect your property taxes."

This follows from how rates are set. If every property in a municipality rose by the same percentage and the budget stayed the same, the rate would fall and each owner's share would be unchanged. A property whose value rose faster than the local average takes on a larger share; one that rose more slowly takes a smaller share. Budget increases are a separate driver: they raise the revenue required, and so the rate, regardless of values.

The two parts are also challenged separately. The Government of British Columbia says: "You cannot appeal your property taxes, but you may be able to appeal your property assessment." See the assessment page for your province for appeal deadlines.

Some amounts on a property tax bill are not calculated from value at all. The Government of British Columbia notes that "Not all taxes are applied to the value of your entire property" and lists other bases, including the value of the land only, the number of lots, the size of the property and "The length of land that fronts a public work (e.g. water line)".

Regina lists items its bill can also include, such as laneway charges, local improvement levies, outstanding account balances and Business Improvement District tax.

Credits and grants can then reduce the amount payable, for example the B.C. home owner grant or the Manitoba Homeowners Affordability Tax Credit. To estimate a total with current rates, use the property tax calculator.