Toronto Property tax refers to the fee that residents of a country owe to their government. The amount of the property tax in Toronto usually varies depending on the location of the property while factoring in other components such as the market value of the property, age of the property, type of building, etc.
Needless to say, property tax is one of the potent ways through which the government generates revenue. This revenue is further used for paying and backing a wide spectrum of public services ranging from schools, roads, garbage collection, sewers and everything in between.
From the homeowner’s end, the payments for property tax can be made annually, semi-annually or quarterly. In Toronto, the property tax structure is inclusive of three different taxes. These are:
The Toronto property tax rate is usually calculated on the basis of one’s house’s worth. The value of a property is usually assessed by government authorities. This is done on a regular basis, however, the frequency can vary by province. For instance, in Toronto, it is done once every four years. In provinces like Ontario and Alberta, this happens once every four years and every year respectively. On average, the property tax rates in Toronto range between 0.5% to 2.5%. For your better understanding, here is a snapshot of what the bifurcation of the property tax fees in Toronto looks like.
| Description | City Tax Rate | Education Tax Rate | City Building Fund | Total Tax Rate |
| Residential | 0.472052% | 0.153000% | 0.006881% | 0.631933% |
| Multi-Residential | 0.940384% | 0.153000% | 0.000000% | 1.093384% |
| New-Multi-Residential | 0.472052% | 0.153000% | 0.006881% | 0.631933% |
| Commercial | 1.232935% | 0.880000% | 0.009074% | 2.122009% |
| Industrial | 1.198750% | 0.880000% | 0.005931% | 2.084681% |
| Pipelines | 0.908020% | 0.880000% | 0.013236% | 1.801256% |
| Farmlands | 0.118013% | 0.038250% | 0.001720% | 0.157983% |
| Managed Forests | 0.118013% | 0.038250% | 0.001720% | 0.157983% |
City Council, the primary decision making body of Canada, adopted an increase to the City Building Levy by adding 1% in 2020 and 2021 to the existing 0.5 percent increment and also an additional 1.5 percent annually from 2022-2025.
Special charges in the property tax are inclusive of the following:
The below-mentioned fees have been in effect from January 1, 2023.
| Description | Fee |
| Mortgage company administration fee | $11.58 |
| Re-distribution of payment fee | $48.97 |
| Pre-authorized tax payment | $28.39 |
| Reprint of tax bill | $20.81 |
The following fee rates are subject to change as and when the City Council declares the 2023 tax budget in 2023.
| Description | Fee |
| Tax receipt for current year | No charge |
| Processing for dishonoured cheque | $40 on every cheque |
| Final notice | $25.09 per notice |
| Mortgage company administration fee | $11.06 |
| Municipal charges | $59.61 |
| Account set up fee for new property | $59.61 |
| Notice of issuance to Bailiff | $66.80 |
| Overdue utility amount | $41.70 |
| Ownership change fee - For changing the ownership on a property tax account | $41.70 |
| Ownership change fee - For changing ownership on both tax and utility accounts | $59.61 |
| Payment by debit card using PayIt | The lesser of 1.5% and the amount permitted to be passed on the users by card brands |
| Payment by credit card via PayIt | The lesser of 2.35% and the amount permitted to be passed on the users by card brands |
| Prior Year Tax Receipt | $19.15 yearly, per account |
| Refund Fee | $41.70 on every transaction or refund |
| Refund/Transfer credit balance status fee | $41.70 on every request |
| Statement of accounts | $19.15 per statement |
| Tax apportionment application | $59.61 on every application |
| Tax calculation statement | $59.61 on every tax account |
| Tax certificate | $72.98 per certificate |
| Tax history statement | $41.70 on every tax account, yearly |
| Tax status verification | $29.81 on every tax account |
Under the City of Toronto Act 2006, the city, may fix certain costs that will be charged as the cost of proceedings under 356. The price for cancellation is also defined by the City of Toronto Act, 2006, section 343. The below-mentioned fee is effective from January 2023.
| Description | Fee |
| Proceeding for the tax sale amount | $238.55 |
The below-mentioned fee amount is subject to change based on the declaration of budget by City Council.
| Description | Fee |
| Charges for Surveys, Advertising, Soil Testing, Preparation and Placement of Placards | Actual cost |
| Execution of the extension agreement | $1,233.36 on every agreement |
| Farm Debt Review Board | $38.57 per Review + Actual Costs |
| Notice of Issuance to Bailiff | $66.80 |
| Payment in Court and Statement of Facts | $482.40 + Actual Costs |
| Preliminary Observation Report | $379.60 per Report |
| Preparation & Notice of Registration | $38.57 for every Notice + Actual Costs |
| Preparation and Registration of Tax Arrears Cancellation Certificate | $260.45 + Actual Costs |
| Preparation of the Final Notice | $38.57 for every Notice + Actual Costs |
| Preparation for Land Transfer | $1,568.58 + Actual Costs |
| Preparation of Statutory Declaration | $227.78 |
| Preparation of Tender forms for Public Sale | $38.57 for every Notice |
| Public Tender Application | $38.57 Due Upon Pick-up |
| Costs for Registered Mail | Actual Costs |
| Registration File Folders | Actual Cost |
| Registration of Tax Arrears Certificate | $1,145.81 + Actual Costs |
| Sale by Public Tender | $1,080.42 + Actual Costs |
| Tax Sale Proceeding | $238.55 |
The below-given fee is effective from January 1, 2023.
| Description | Fee $ |
| Ownership change fee | $59.61 combined fee on every property |
| Overdue utility amounts | $41.70 |
| Utility clearance certificate | $56.15 per certificate |
The below-mentioned fees is applicable from January 1. 2023
| Description | Fee $ |
| Processing for dishonoured cheque | $40 for every cheque |
| Duplicate utility bill fee | $20.52 on every additional bill |
| New account set up fee | $76.78 on every new account |
| Outstanding Utility Fees/Fees for Condo/Management Boards | $34.06 per notification |
| Fee for re-distribution | $48.97 on every request |
| Reprint utility bill | $20.81 on every bill |
| Special/Final Read Fee – To finalize a utility account | $18.69 |
| Utility Account Ownership Change Fee | $43.63 |
| Water Collection Field Visit | $31.18 |
| Statement for water consumption – Statement detailing activity on a utility account for a specified year | $49.88 |
| Statement for water consumption – Statement detailing activity on a utility account for every consecutive year | $31.18 for every consecutive year |
Below are the listed due dates for property tax installments
| Bill Type | Date | Date | Date |
| Interim bill | March 1 | April 3 | May 1 |
| *Final bill | July 4 | August 1 | September 1 |
| Installment Type | Date |
| Two installments | Interim – March 1 *Final – July 4, 2023 |
| Six installments | Interim – March 1, April 3, May 1 *Final – July 4, August 1, September 1 |
| Eleven installments | Interim – February 15, March 15, April 17, May 15, June 15 *Final – July 17, August 15, September 15, October 16, November 15, December 15 |
Here’s a sneak peek into the current trends in the property tax in Canada -
Reportedly, the residents of Toronto will witness a sharp 7% increase in their tax bill this year. The 7% numerical figure has been bifurcated into a 5.5% property tax hike and a 1.5% city building levy.
As per the latest reports, and a survey done by CBC News, the property taxes in GTA can become more than double. Last year, the provincial government passed the Bill 23. It will be eliminating some amount of the fees that municipalities charge from developers in exchange for the right to build certain types of homes.
New data shows the highest property tax revenues in Canada during the 2021-2022 taxation year. As the country’s economy bounces back and is paving its way towards progressive growth, revenue generated through property taxes is also showing a steady rise.
Wrapping Up
With the world recovering from the pandemic, the Global economic front is witnessing a steady recovery. With this, property tax revenues generated across the countries are also showing a positive growth curve. Amid all this happening, Canada has become one of the highest property tax revenue-generating countries.
Toronto has the highest property tax rates in Canada.
In Labrador and Newfoundland, there are no property tax rates.
Property tax rates are paid on a quarterly, semi-annually or annual basis.
In Canada, homeowners pay their taxes directly to the government. However, people living on rent pay their taxes through rent.
Property owned by the federal or provincial government is entirely exempt from any kind of property tax.
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
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
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