What is property tax?

Property tax is a tax on land and buildings, charged every year to the owner. Ontario's Ministry of Finance puts it simply: "Property tax is a levy based on the assessed value of property."

Two things decide the amount: - the assessed value of the property, set by a provincial or municipal assessor; - the tax rates that apply to the property's class, such as residential or commercial.

The money mainly pays for local government. Nova Scotia's assessment agency, PVSC, says property taxes "make up about 80% of most municipalities' revenues." They pay for "services like garbage collection, sewage treatment, fire and police protections, parks and other important community programs." New Brunswick's government says that "most of the money goes directly to support your local community."

Property tax is separate from the one-time land transfer tax charged when a property is bought. It is also separate from vacancy taxes, which some cities and provinces add for empty homes. See vacancy taxes for one example.

Most bills combine a municipal portion and an education (school) portion, set by different governments.

Municipal portion. Each municipality sets its own rates in its annual budget. In Ontario, "the rates for the municipal portion of the tax are established by each municipality." In a two-tier municipality, the upper tier sets one component of the rate and the lower tier sets another.

Education or school portion. In most provinces the provincial government sets this part: - Ontario: the Minister of Finance sets education rates in Ontario Regulation 400/98. - British Columbia: "each year the province sets the residential school tax rate for each school district." - Saskatchewan: the 2026 education property tax rate for residential property is 4.27 mills. - Quebec: a separate school tax is billed. For 2026-2027 the rate is "0,07899 $ par 100 $", with the first $25,000 of value exempt.

In Nunavut, the Mill Rate Establishment Order, 2025 set the education mill rate at 0.00 mills for both Iqaluit and the general taxation area for the 2025 calendar year. Each province and territory has its own page, such as Ontario or Nunavut.

Other levies. Municipalities often collect for other bodies too. In British Columbia, the municipality may collect for regional districts, regional hospital districts, the British Columbia Transit Authority, TransLink, BC Assessment and the Municipal Finance Authority.

Outside municipalities. Where there is no municipality, the province or territory taxes directly. Ontario does this through its Provincial Land Tax program. In Nunavut, the Minister of Finance sets mill rates for the "general taxation area", which the Property Assessment and Taxation Act defines as "the geographic area of Nunavut that is not within a municipal taxation area."

The basic formula is the same across Canada: assessed value x tax rate = tax. Ontario describes it as multiplying the assessed value "by the combined municipal tax rate and education property tax rates for the applicable class of property."

What changes is how the rate is written: - As a percentage (Ontario). Toronto's 2026 total residential rate is 0.767311%. The City's own example is "692,140 x 0.767311% =$5,311 (numbers rounded)." - In mills, or dollars per $1,000 of value (for example Saskatchewan's education rate and Iqaluit). Iqaluit's 2026 residential rate for Classifications 7/8 is 15.73 mills, so a home assessed at $400,000 carries $6,292 of municipal tax. - In dollars per $100 of value (for example Quebec's school tax). Quebec's 2026-2027 school tax on a home with an adjusted value of $430,000 is (430,000 - 25,000) x 0.07899 / 100 = $319.91.

These formats express the same thing. A rate of 1% equals 10 mills, which equals $1.00 per $100.

In some provinces the value is adjusted before the rate is applied, and grants or credits can reduce the result; each province page explains the local steps. The property tax calculator applies each city's published rates.

An assessor estimates each property's value, usually as of a fixed valuation date, and records it on an assessment roll. Municipalities then apply their rates to that roll.

Each province or territory has its own assessor: - Ontario: the Municipal Property Assessment Corporation (MPAC). Values are "based on the current value of properties as of a legislated valuation date, which is currently January 1, 2016." - Nova Scotia: PVSC "determines the assessed value of every property in Nova Scotia each year." It sends the roll to all 49 municipalities every December and mails notices every January. - New Brunswick: Service New Brunswick assesses every property, showing "the value of your property as of January 1 each year." - Nunavut: a Director of Assessment certifies each assessment roll "on or before October 31 in each year."

Ontario points out a common confusion: "An assessment notice is NOT a tax bill." The notice reports the value; the tax bill comes later from the municipality.

Assessment rules, notice dates and phase-ins differ by province. Each assessment page covers one province or territory.

The municipality usually prepares and sends the bill. Ontario says: "Your local municipality is responsible for the preparation of your tax bill." New Brunswick is an exception, where "the province collects property tax on behalf of local governments." There, bills "are sent to all property owners in early March."

Some municipalities bill in two stages: an interim bill early in the year and a final bill later. Iqaluit's 2026 cycle is an example: - interim notices were mailed effective February 17, 2026; - instalments were due March 31 and May 29, 2026; - final notices for the second half of the year were expected in June 2026.

Due dates, instalment plans, pre-authorized payment options and late-payment penalties are set locally. They differ from one municipality to the next, so the dates printed on each bill are the ones that apply. City pages on this site list the published 2026 dates.

Provinces, territories and municipalities run property tax relief programs, often tied to a principal residence, age, income or disability. The main types are: - Grants that reduce the bill. British Columbia's home owner grant "reduces the amount of annual property tax you pay for your principal residence." - Credits against school tax. Manitoba's Homeowners Affordability Tax Credit for 2026 is "the lesser of $1,600 and the gross school taxes on your principal residence." - Exemptions on part of the value. Quebec's school tax exempts the first $25,000 of adjusted value on every property. - Deferrals. Some programs postpone property tax rather than reduce it. B.C.'s tax deferment program "is a loans program available to eligible B.C. homeowners" that "allows you to defer your current year property taxes." Under Alberta's Seniors Property Tax Deferral Program, "Eligible senior homeowners can defer all or part of their municipal property taxes with a low-interest home equity loan."

Each program has its own rules, deadlines and application process, set by the government that runs it. The programs pages quote the official criteria for each one.

What can be challenged is generally the assessed value, not the tax itself. The Government of British Columbia puts it this way: "You cannot appeal your property taxes, but you may be able to appeal your property assessment." Rates are set by council by-law or by provincial or territorial regulation and order.

Each province and territory sets its own complaint or appeal process. Deadlines are short and differ by jurisdiction. For example, Nunavut's Property Assessment and Taxation Act requires a complaint to reach the board of revision before the later of a day set by regulation or by-law and "the day that is 45 days after the date of mailing indicated on the notice of assessment." In Ontario, the Ministry of Finance directs owners who disagree with their assessed value to MPAC's appeal information.

The assessment notice states the deadline and where to file. Each province's steps, deadlines and fees are on its assessment page.