Jan 5, 2024
Property tax is a fundamental aspect of homeownership, and understanding your property tax bill is crucial for effective financial planning. In Ontario, the property tax system involves various components and considerations, from assessments to rates and levies. In this blog, we’ll delve into the key aspects of property tax, providing you with valuable insights into the intricacies of your property tax bills.
Property tax is a levy based on the assessed value of your property, consisting of both municipal and education portions. The municipal rates are set by each municipality, with two-tiered municipalities having rates established by both upper and lower tiers.
The calculation involves multiplying the Current Value Assessment (CVA) by combined municipal and education tax rates. The Municipal Property Assessment Corporation (MPAC) determines the CVA, with tax rates varying based on the property’s class.
Local municipalities handle tax bill preparation, while MPAC assesses properties. Property assessments are based on the property’s value as of January 1, 2016, with any changes reflected in updated assessment notices.
Due to the COVID-19 pandemic, Ontario’s property assessments for 2023 and 2024 are based on the 2016 benchmark. Homeowners must be aware of potential increases in assessments, considering factors like ownership changes, structural alterations, and classification adjustments.
Understanding factors influencing property assessments, including municipal budgets and tax rates, empowers homeowners for proactive financial planning. Whether a current homeowner or prospective buyer, knowledge is crucial in navigating Ontario’s property tax system.
Delve into the breakdown of provincial taxes like Provincial Land Tax (PLT) and Education Tax, along with local levies such as Local Roads Board Tax and Local Services Board Levy. Understand who pays, what these taxes support, and how rates are determined.
Navigating Ontario’s property tax landscape requires a comprehensive understanding of assessments, rates, and levies. Whether you’re a current homeowner or a prospective buyer, staying informed empowers you to make sound financial decisions and effectively plan. Subscribe to our newsletter for regular updates on real estate market insights, news, and reports. Be prepared for the evolving landscape of property taxes in Ontario.
Hi! I’m Erin Crocker. I’m a real estate lawyer with over 10 years of experience in Alberta and British Columbia real estate law. I love technology and efficiency. I’m on a mission to create a modern, digital closing experience for buyers and sellers through technology, transparency and sharing knowledge.
