Skip to main content
Sell Your Home
Shortlisted Properties
  • New Homes
  • For Sale
  • For Rent
Danger! Indicates a dangerous or potentially negative action.
Error

Maximum 4 project can be compared at one go.

How to Pay Property Tax Late Payment & Avoid Penalties in Toronto?

Late Tax Bill Payments Toronto

Property taxes are charges or levies imposed by the local government for upkeep, infrastructure improvement, and educational purposes. They are the city of Toronto's primary revenue stream, comprising nearly 33% of the overall operating budget. To avoid paying high interest on property tax, paying all your property tax payments is important to avoid any property tax penalty.

What are the Penalty, Interest and Fee Charges for Late Payments?

The city takes legal action to recover unpaid property taxes. The Toronto Municipal Code's Chapter 767 governs the procedure for tax collection of outstanding property taxes. Following the City of Toronto Act of 2006, property tax penalties and interest rates are determined by city bylaws. The following are the property tax payments penalty charges and rules applied to late property tax penalties -

  • On the first day of delinquency and the first day of each subsequent month, as long as taxes or charges are not paid, late payment tax penalties are applied to all delinquent payment taxes at a rate of 1.25%.
  • Tax penalties and interest charges cannot be waived or changed on overdue balances.
  • Additionally, if taxes are unpaid, fees could be levied.
  • The oldest unpaid amount is paid off first when payments are made.

Arrangements for Payment and Collection Issue

If you need information on your property tax balance or may have a query regarding your tax account, call 311 for all your enquiries. The line is open from Monday to Friday, 8:30 am. to 4:30 pm.

Accounts Assigned to Bailiff

For payment solutions, get in touch with the Bailiff company if your account is with a collecting firm or a Bailiff. Property tax payments must be made to the Bailiff firm; the city cannot collect fees. For assistance, email revcoll@toronto.ca if you are a property owner with a tax account in the pre-registration or registration category.

Real Estate Tax Account Statement

Property tax accounts with past-due payments obtain property tax statements for their accounts. Property tax statements are sent via mail for the first and last billing cycles.

Interim

  • The property tax statement is free of charge for January 1, with a balance from December 31.
  • Before the March 31 tax deadline.
  • Before the May 31 tax deadline.

Final

  • Before the tax filing deadline in July.
  • Before the September deadline for filing taxes.

Note - A statement of accounts fee is counted into the property tax account. It is necessary to pay the past-due payment immediately.

Collection Letter and Contact Number

Property tax payments must be submitted by the deadline to prevent interest and penalty fees. Property owners with unpaid fees or debts may be notified. In addition, property owners must pay their property taxes or contact the city if they have any queries regarding the property tax account.

Final Notice Alert

Final notices are sent out when previous efforts to process payments have been unsuccessful. The property owner has 21 days to pay after sending a final notice. The property/real estate tax account is turned over to a Bailiff if the payment is incomplete.

For Residential Property Owners -

  • A final notice is sent out in April for accounts with an outstanding balance from a prior year.
  • The beginning of May is when accounts are given to a Bailiff.

For Non-Residential Property Owners -

  • A final notice is sent out in November if an account has a current year's overdue amount.
  • A Bailiff receives accounts at the start of January of the following year.
  • A final notice fee is imposed on the property tax account.

Property Tax Fees

The table below entails property tax fees, effective as of January 1, 2023.

DescriptionFee Amount
Mortgage Business Administration Fee – Bi-annual invoices will be sent for the fee for mortgage business administration for each property tax account (interim and final bills).$11.58
Payment Re-Distribution Fee –  When an electronic payment is made to the wrong account, a request to re-distribute funds must be submitted.$48.97
Pre-Authorized Tax Payment Program Reinstatement Fee$28.39
Reprint tax bill – For a request for the reprint of a bill$20.81

The fees mentioned below may be subject to change as and when the city council determines the 2023 tax and rate budget in February.

DescriptionFee Amount
Current Year Tax Receipt – Per request.No charge
Dishonoured Cheque Processing (NSF) – Processing a cheque returned by a bank or financial institution for reasons such as insufficient funds available in the bank account upon the cheque drawn.$40 per cheque and payment
Final Notice Fee – For overdue property tax accounts.$25.09 per notice
Municipal Charges added to the tax roll - Any unpaid fee levied by the City or Agency for a service or product requested by a City division or Agency other than the Revenue Services and added to the tax roll for collection purposes.$59.61
Setting up fee for a new property tax account$76.78
Issuance Notice to Bailiff$66.80
Overdue utility amounts added to the tax roll (Transfer to Tax Notice)$41.70
Ownership Change Fee on a property tax account.$41.70
Ownership Change Fee on tax and utility accounts for the same property when requested simultaneously.$59.61 combined fee per property
Payment by debit card using PayIt (MyToronto Pay)The lesser of 1.5% and the amount that card brands are allowed to charge users
Payment by credit card using PayIt (MyToronto Pay)The lesser of 2.35% and the amount that card brands are allowed to charge users
Prior Year Tax Receipt$19.15 per year and account
Refund Fee – If a property tax account has a sum due from an overpayment or credit balance that has not been the result of City of Toronto-initiated action and has been there for more than two years, a user fee will be applied to process the application for a tax refund.$41.70 per transaction or refund
Refund or Transfer Credit Balance Status Fee – A charge for qualified professionals working on the taxpayer's behalf and requesting information about the refund transfer credit balance.$41.70 per request
Statement of Accounts – (Overdue Tax Notices) A statement other than the annual statement delivered in January. Taxpayers can fulfil their tax liabilities by notifying the IRS of unpaid taxes totalling more than $100.$19.15 per statement
Tax Apportionment Application – If each parcel of land may be legally transferred under the Planning Act separately, an application as per section 322 of the City of Toronto Act, 2006, for the allocation of unpaid taxes from parcel(s) of land to numerous newly created parcels of land.$59.61 per application
Tax Calculation Statement – A document describing the methodology used to determine annual property taxes for each commercial, industrial, and multi-residential property, including any capping, claw-back, or other modifications.$59.61 per tax account per tax year
Tax Certificate – A tax statement provided by the city's treasurer following Section 317 of the City of Toronto Act, 2006, listing all amounts owed.$72.98 per certificate
Tax History Statement – A listing of each transaction made during a given tax year in a property tax account from 2005 till the current year.$41.70 per tax account per tax year
Tax Status Verification – A statement addressed to a financial company for mortgage requirements, letting them know whether or not the property taxes owed on a specific tax account are paid.$29.81 per tax account

*Charges are subject to change and are evaluated yearly as part of the budgeting process.

Tax Arrears Issued to Bailiff

When property owners neglect the final notice, tax accounts are handed over to the Bailiff. The property owner receives an issuance notice to Bailiff in the mail that specifies which property has been given to the Bailiff, the amount still owed, and the requirement that all additional payments be paid directly to the Bailiff.

Residential Property Owners

  • Accounts having an unpaid balance of $100 or more from the prior year are handed to a Bailiff.

Non-Residential Property Owners

  • A Bailiff is responsible for non-residential property owners' accounts with unpaid tax amounts.
  • The property tax account receives a Notice of Issuance to Bailiff Fee.

Land Sales via Public Bidding

If any accounts are delinquent and no adequate payment alternatives are obtained, a Sale of Land by Public Tender shall follow as per the City of Toronto Act, 2006. Legal action is initiated when taxes have not been paid for a minimum of two years.

Procedure

  • The city records a Tax Arrears Certificate on the property's title.
  • Debt holders get one year from the Tax Arrears Certificate's registration date to pay the cancellation amount, including all assessed and unpaid taxes and any interest earned, property tax penalty, and fees.
  • The treasurer must sell the property if payment is not received within that year or an extension agreement is not signed.

You May Also Read:

Pay Property Tax or Utility BillToronto Property Tax Rate 2025Β 
Property Tax & Utility Bill DeadlinesUpdate Property Taxes and Utility Bills
Types of Property Tax BillVacant Home Tax
Apply For Subsidised Housing YorkAffordable Housing For First-Time Buyers
Residential and Non-Residential Building PermitsToronto Building Inspection
Peel Subsidized HousingPickering Development Charges
Apply For Building Permit TorontoHome Inspection Checklist

Zilpha Rodrigues Baker by day and writer by night, Zilpha enjoys tackling the unknown and simplifying the complex. A voracious reader with keen attention to detail, she hopes to fulfil her dream of publishing a cookbook and meeting her idol, Shah Rukh Khan. With a heart of gold and the right amount of spice, she is a force to be reckoned with. Also, she makes bomb cheesecakes.

Related Articles

Find Best Mortgage Rates in Toronto and Compare the Lowest Current Rates

When you want to buy a home in Toronto, finding the best mortgage rates Toronto can save you a lot of money in the long run. Toronto, one of Canada’s biggest housing markets, offers a

Mortgage Rates toronto

Is MAT Mandatory to Pay For Short-Term Rentals in Toronto?

The MAT (Municipal Accommodation Tax) is imposed on short-term rentals in Toronto. As a registered operator of short-term rentals, you need to assemble and put off 4 percent as a MAT on total rentals. As

Short Term Rentals in Toronto

A Guide to Property Tax & Utility Bill Deadlines, Rebate and Relief Programs in Toronto

Pre-Authorised Payment ProgramsTo enrol in a Pre-Authorised Tax Payment Program (PTP), one must complete a Pre-Authorised Tax Application form. By enrolling in the program, the property tax bill payments are automatically deducted from your bank

Property Tax & Utility Applications and Deadlines

How Many Types of Property Tax Bill in Toronto City?

For a government of any country, property taxes are one of the most practical ways to earn revenue. Every homeowner in Canada is entitled to pay their share of property tax. The income collected through

Property Tax Bill Types

Explore More Topics

Canadian Housing Market: Investment Hotspots, Market Trends, and Outlook

The Canadian housing market 2425 offers a variety of attractive locations for real estate investment, each with unique characteristics and

Canadian Housing Market 2024

Seller's Permits and Resale Certificates to Understand Legal Compliance and Tax Benefits

Do you also encounter difficulties understanding seller's permits and resale certificates? If yes, then worry not, as this is common

Navigating Seller's Permits and Resale Certificates

Toronto Building Code: Permits, Zoning By-Laws & Construction Regulations For Land Purchase & Construction

Purchasing and Constructing land in Ontario can be a daunting task. You never know what might happen. There are numerous

Toronto Building Code

How to Apply Building Permit: Status, Cost & Map in Toronto?

Toronto stands out as Canada's most renowned city. Thanks to its vibrant culture and abundant living and working opportunities, it's

Applying for Building Permit in Toronto

How to Pay Toronto Property Tax and Utility Bill with Easy Methods?

Paying your property tax or utility bill might not be the most exciting task on your to-do list, but it’s

Pay Utility bill and Property Tax

Toronto Property Tax: Types, Special Charges, Payment and Calculation Method

Regarding Toronto, property transfer tax takes center stage during property transactions, encompassing sales and purchases and extending to capital gains.

Property Tax in Toronto

Building Inspections in Toronto

Obtaining all the necessary permits for a construction project is a significant milestone for developers. Still, there is one more

Building Inspections in Toronto

How to Update Property Taxes and Utility Bills on Transfer Property Ownership?

Canada is a beautiful country that is well-positioned and doing great on global surveys of progress, safety, and quality of

Conditional Building Permit in Toronto: Application Guide and Requirements & Process

A Conditional Permit (CP) is a building permit issued where all the approvals were not received. CPs are used for

Conditional Building Permit Applications

One Time Rent Assistance Ontario: Complete Guide for Homeowners and Renters

Since so long ago, Toronto, a city of towering buildings and legendary real estate masterpieces, has served its residents. When

Financial Support You Need as a Homeowner or Renter

Free Guide to Home Owners to Manage Their Multi-Tenant Houses in Toronto

Multi-tenant housing is when four or more people bunk together in one house and share the washroom and the kitchen

Multi-Tenant House Owners

Know the Rules Before You Pay Council Tax on a Vacant Home in Toronto

A tax is a mandatory financial charge or some different type of levy imposed on the taxpayer by a government

Vacant Home Tax

Toronto Property Tax Rates: Interest Rates, Fees and Hikes

Toronto Property tax refers to the fee that residents of a country owe to their government. The amount of the

Toronto Property Tax

Ontario Property Assessment: Notice, Appeal Process and How Taxes Are Calculated

All properties in Ontario must be valued and assigned a classification by the Municipal Property Assessments Corporation (MPAC) Opens in

Property Assessments & Appeals

Aware About Sign Permit For Your Business Identification and Promotions

The Sign By-law, which lays out rules for signs used for business identification or promotional reasons, was passed by the

Sign Permits & Information

Real Estate Planning and Development Services in Toronto, Ontario

Toronto, the largest city in Canada, is situated on the northwestern shore of Lake Ontario. It is home to a

Toronto City Development plan

Building Inspections Permits

By requiring building inspection permits and demolitions for building, as well as by looking into emergency orders and work done

Building-Inspection permits

Guide for Toronto Residential and Non-Residential Building Permits

One of the most crucial steps in the building process is obtaining a building permit. A building permit is a

How to Apply for a Building Permit

How to Get Into Co-op Housing for Rent in Toronto?

You must have seen organisations that choose to invest in real estate properties. Do you know what exactly the framework

Co-operative Housing

Short-Term Rentals in Toronto: Complete Guide for Tenants and Owners

Shifting is a global issue, especially for tenants with a travelling professional who needs to find a new settlement within

Short Term Rentals

Recent Blogs

The Million-Dollar Mansion That Redefines Luxury Living

Picture walking through an ornate gateway and strolling along a circular driveway leading to a remarkable design home. At first glance, 1370 Oak Lane in…

Bridge Financing Guide in Canada: Helping You Move Without Delays

Buying a new home while selling your current one can be challenging, especially when closing dates do not match. Bridge Financing guide helps homebuyers manage…

How To Manage Your Housing Costs After Layoff in Canada

Losing a job can be a distressing experience, particularly when managing housing costs. Whether you have a mortgage or pay rent, housing expenses often comprise…

Metro Vancouver Proposing Extension of DCC In-Stream Protection Period

Metro Vancouver is considering extending the Development Cost Charges (DCC) in-stream protection period. This proposal aims to secure funding from the Canada Housing Infrastructure Fund…

Luxury Real Estate in Toronto – A Market Frozen by Tax Change

Once a playground for the global elite, the Toronto real estate market faces an unexpected slowdown. What was once a hotbed for high-net-worth individuals eagerly…

Miami Real Estate Investment : Market Challenges and Risks

Miami homes have been recognised as a prime destination for real estate investment, attracting both domestic and international investors with strong rental incomes and luxury…

Flipping in Canada : A Look at the Changing Market

Have you seen a run-down house transformed into a beautiful home and sold for a profit? If the answer is yes, you have witnessed house…

Toronto’s Condo Market: A Silent Exodus in the Investor Era

For years, Toronto condo market has been a playground for investors, fueling pre-construction sales, driving prices up, and shaping the city’s skyline. But today, that…

BC Building Code Update: A Game-Changer for Housing

Vancouver is no stranger to innovative housing solutions. Due to its growing population, rising housing costs, and limited land availability, the city continuously seeks to…

Elements of New Home: Move in Fees For Rental Houses

Moving into a new home is exciting but comes with unexpected costs. While most people plan for rent, other fees like application charges, security deposits,…

Vancouver Luxury Tower Drops Social Housing, Sparks Backlash

Vancouver, a city of glittering towers and growing tent cities faces a paradox. A new luxury development once promised inclusivity but now leaves social housing…

Ontario's Housing Crisis : 5 Million Empty Bedrooms, But No Homes?

Ontario is facing an unparalleled housing crisis, yet an overlooked paradox exists: over 5 million bedrooms sit empty across the province. This figure equates to…

Making the Most of Your Home on Airbnb: A Smart Approach

The sharing economy has revolutionised how we travel and live, and Airbnb Home in Canada has become a dominant force in this transformation. According to…

Starter Home vs Forever Home: Which One Should You Choose?

Choosing between a starter home vs forever home in Canada is a crucial decision for any homebuyer. A starter home is a smaller, more affordable…

Etobicoke's Skyward Trend : Four Tower Condo in Etobicoke

The Fana Group of Companies has recently proposed a four tower condo in Etobicoke West Mall neighbourhood, providing 1000 residential units. Originally submitted in December…

Related to your search
Tell us a Little about yourself!