Guess Which Ontario City Has The Lowest Property Taxes?

Monday Nov 15th, 2021

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It's true - Toronto’s Property Taxes are the lowest in Ontario!

Property tax is an important cost when considering a new home and for owners of their current dwellings. 

As Buyers we definitely calculate the down payment, monthly mortgage fees, closing costs, and land transfer costs. But it’s always important to consider how property taxes can add thousands of dollars every year to the cost of home ownership. A brand new report just released the figures on Ontario’s property tax scale.

Right now, the Ontario government assesses property taxes every 4 years so 2020 began the current property tax phase. And as part of COVID-19 tax relief efforts, property value assessments are frozen at 2016 levels through the 2022 tax year – something we all are very happy about.

These are the lowest and highest five residential property tax rates which have stayed the same between 2020 and 2021:

5 Lowest Municipal Residential Property Tax Rates:

  • Toronto: 0.611013
  • Markham: 0.632908
  • Richmond Hill: 0.659549
  • Vaughan: 0.669976
  • Milton: 0.683333

 

5 Highest Residential Municipal Property Tax Rates

  • Sudbury: 1.546783
  • North Bay: 1.568182
  • Sault Ste. Marie: 1.588067
  • Thunder Bay: 1.59108
  • Windsor: 1.818668

 

“Paying your taxes will be a financial obligation over the course of your home’s ownership, so it’s important to understand how they may impact your household’s bottom line,” reads the report.  “As many Ontarians have switched from urban to small-town or rural living, they may not realize that while their home has a relatively smaller price tag, it may come with a higher tax rate. That’s because property tax rates vary across the province, based on municipalities’ size, councils’ operating budgets, and the value of local housing markets.”

As a result, larger urban centers, like Toronto, can offer lower property tax rates owing to a larger pool of taxpayers, and higher real estate prices. However,  smaller communities will often have higher tax rates to account for a smaller population and, likely, fewer resources. 

But the municipal tax rate is just one factor. Another is the recent value assessment of a home, as determined by the Municipal Property Assessment Corporation (MPAC). The amount you actually pay in tax is calculated by multiplying your city’s residential tax rate by this assessment value. 

To see how tax rates differ across the province,  the report also compiled 2021 property tax rates for 35 Ontario municipalities:

Residential Property Tax Rates in 35 Ontario Municipalities

1. Toronto: 0.611013 

2. Markham: 0.632908 

3. Richmond Hill: 0.659549 

4. Vaughan: 0.669976 

5. Milton: 0.683333 

6. Oakville: 0.721512 

7. Aurora: 0.762133 

8. Burlington: 0.779583 

9. Newmarket: 0.794819 

10. Halton Hills: 0.796429 

11. Mississauga: 0.803063 

12. Caledon: 0.805224 

13. Brampton: 0.962669 

14. Ottawa: 1.000000 

15. Pickering: 0.080044 

16. Ajax: 1.091294 

17. Waterloo: 1.093399 

18. Kitchener: 1.106139 

19. Whitby: 1.122891 

20. Guelph: 1.142609 

21. Cambridge: 1.18633 

22. Hamilton: 1.208567 

23. Barrie: 1.218959 

24. Oshawa: 1.304741 

25. Niagara Falls: 1.30914 

26. Orangeville: 1.333837 

27. Kingston: 1.365454

28. London: 1.388283 

29. Peterborough: 1.448245 

30. St. Catharines: 1.455746 

31. Sudbury: 1.546783 

32. North Bay: 1.568182 

33. Sault Ste. Marie: 1.588067 

34. Thunder Bay: 1.59108 35

35. Windsor: 1.818668

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