How to Pay Late Property Tax Payments in 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.

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

*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.