Overview
If you own a property in Ontario, you need to pay property tax every year. This tax pays for services like:
- public education
- firefighting
- local police
- libraries
How the tax is calculated
Property tax is calculated based on the:
- general municipal tax rate and any additional municipal tax rates for special services provided by your municipality (if applicable)
- education tax rate
- property value
Municipal tax rate
Municipal tax rates are established by your municipality and can vary, depending on the type of property you own.
Each year, municipalities decide how much they want to raise from property taxes to pay for services and determine the tax rate based on that amount.
To learn about the tax rates in your municipality, contact the finance or treasury department of your local municipality. Some municipalities may have a property tax calculator available on their website.
Education tax rate
Education taxes help fund elementary and secondary schools in Ontario. Education tax rates are set by the provincial government. All residential properties in Ontario are subject to the same education tax rate.
Paying property tax
Every year, your municipality will mail you a tax bill for every property you own.
How much you need to pay will depend on:
- your municipality’s budget
- the relative value of all properties in your municipality, compared to your property
For the majority of Ontarians, your local municipality is responsible for:
- preparing your property tax bill
- deciding when to send it and when it is due
Property tax bills are standardized across all municipalities to make sure property owners get a clear and concise summary of what they are responsible for paying.
Properties outside of municipalities
Provincial Land Tax is the property tax you pay if your property is not part of a municipality.
Property value
The Municipal Property Assessment Corporation (MPAC) determines the value of your property. Your property value is shown on a property assessment notice from MPAC, as well as on your annual property tax bill.
Property values are reassessed every 4 years. In 2016, MPAC reassessed properties across Ontario and these assessed values apply from 2017 to 2020. Based on the reassessment, assessment increases are introduced over 4 years to provide greater stability and predictability.
Appeals
If you disagree with the assessment that MPAC has established for your property, you may submit a Request for Reconsideration (RfR) to MPAC free of charge.
If you disagree with MPAC’s response to the RfR, you may file an appeal with the Assessment Review Board (ARB).
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