Ontario Cities With the Highest and Lowest Property Tax Charges in 2022

Notice: This 2022 report is an replace of our 2021 Ontario property tax findings.

When shopping for a house, owners often deal with budgeting for the upfront prices – your down fee, closing prices, land switch tax, and different ongoing prices comparable to carrying prices, mortgage funds, and utilities. Property taxes are essential so as to add to the record however typically missed. 

Paying property taxes is a monetary obligation for all owners in Ontario and may value you hundreds of {dollars}, so it’s essential to grasp how they might influence your family’s backside line. Property tax charges differ throughout the province and are based mostly on the dimensions of municipalities, the council’s working budgets, and the worth of the native housing markets. Bigger city centres like Toronto for instance, can supply a decrease fee as a result of better variety of taxpayers and better housing costs. A smaller, extra rural neighborhood may have greater tax charges attributable to a smaller inhabitants and fewer sources for the realm.

How Is Property Tax Calculated?

How a lot you pay on tax is decided by the municipality tax charges and the latest worth evaluation of your private home, performed by the Municipal Property Evaluation Company (MPAC). It’s often evaluated each 4 years, however as a result of pandemic, property worth assessments have been frozen till 2024, that means 2016 ranges are nonetheless utilized. It’s nonetheless essential, nevertheless, for locals to concentrate on how these worth assessments could change when the time comes, as a result of development in lots of Ontario markets during the last two years.

You possibly can decide the quantity you’ll pay in property tax by multiplying your most up-to-date residence worth evaluation from MPAC by the residential fee set by your native municipality. In Ontario, these are based mostly on the next:

  • The MPAC-provided evaluation of your private home’s worth. That is based mostly on your private home’s traits comparable to the dimensions of your lot, its total situation, whether or not or not there have been structural modifications or renovations, and whether or not or not it has a basement or pool. MPAC additionally takes under consideration the values of comparable properties in your neighbourhood.
  • The Training Tax Price, applied by the province of Ontario, the proceeds of that are used to fund regional colleges.
  • The Residential Tax Price, which is decided yearly by a municipality’s metropolis council.

Which Ontario Municipalities Have the Highest Property Tax Charges in 2022?

To see how tax charges differ and have elevated throughout Ontario, we compiled the 2022 property tax charges for 35 Ontario municipalities. We in contrast these to the typical residence value for the realm and what the taxes could be on the typical $500,000, $1,000,000, and $1.5M residence. 

Toronto’s tax fee is 0.631933%, so owners would pay $7018.18 in property taxes on a house that prices the present common of $1,093,097, the least costly on the record. As compared, the typical value of a house in Whitby in October is rather less than the Toronto common, however owners would have greater property taxes, roughly $11,661.28 per 12 months. It is very important word, that Whitby has common costs nearly as excessive as Toronto and a tax fee almost twice as excessive – when evaluating a house at $500,000, Windsor has a a lot greater tax value of $9268.8, whereas Toronto’s is $3159.67.

A $500,000 price range can go loads additional in areas with greater property taxes than areas with decrease charges. For instance, property taxes in Sault Ste. Marie are greater than Toronto, however the common value of a house in September was simply $291,500. Property taxes are only one facet to think about when shopping for a house; it’s additionally essential to think about your way of life, monetary wants, price range and what metropolis you need to dwell in.

In comparison with 2021, the 5 municipalities with the bottom property taxes haven’t modified, all of that are positioned throughout the Larger Toronto Space:

The 5 municipalities with the very best charges are additionally in step with 2021’s rating, and all are positioned in northern Ontario, aside from Windsor:

How Actual Property Worth Impacts Property Tax Coverage

Greater actual property costs and bigger populations are inclined to imply decrease property tax charges, as a result of greater variety of taxpayers serving to to fund town’s pot and bump the working price range. Toronto has the bottom tax fee within the province given its inhabitants and residential costs. Richmond Hill houses are at present at a mean of $1,425,852, one of many highest costs within the province, whereas tax charges are third lowest at 0.670650%. Nevertheless, cities with decrease common costs are inclined to have greater tax charges. A metropolis’s commercial-to-residential tax ratio additionally components into this. Companies typically pay greater than owners do in tax, and the next business property tax fee interprets to a decrease residential fee and vice versa.  

If you wish to be taught extra about how property taxes work in Ontario, can try our property tax FAQ for residence patrons.

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