Toronto Property Tax Rate

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:

• City tax
• City building fund
• Education tax

Toronto Property Tax Rates

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.

Important Information On City Building Fund Levy

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.

Property Tax Rates Special Charges

Special charges in the property tax are inclusive of the following:

• Areaway charges
• Business improvement area levies
• Charges for local improvements
• Repayment of the HELP (Home Energy Loan Program)

Property Tax Fees: A Detailed Overview

The below-mentioned fees have been in effect from January 1, 2023.

The following fee rates are subject to change as and when the City Council declares the 2023 tax budget in 2023.

Collection Fees of Property Tax

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.

The below-mentioned fee amount is subject to change based on the declaration of budget by City Council.

Everything About Utility Bill Fees

The below-given fee is effective from January 1, 2023.

The below-mentioned fees is applicable from January 1. 2023

Due Date of Property Tax in Canada

Below are the listed due dates for property tax installments

• PTP (Pre-Authorised Tax Payment Plan) Due Dates

Latest News Highlights on Property Tax in Canada

Here’s a sneak peek into the current trends in the property tax in Canada -

• Toronto residents to face a 7% property tax bill hike in 2023

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.

• Amid provincial housing rules changes, property taxes witness a spike in Greater Toronto Area

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.

• As the economy recovers from the pandemic’s impact, Canada bounces back with the highest property taxes in the world

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.