Understanding Property Taxes in Toronto: How They Work and What You Need to Pay

Property taxes are an essential aspect of homeownership, contributing significantly to the funding of local services and infrastructure in Toronto. Understanding how these taxes work and what you need to pay can help you manage your finances more effectively and avoid any unpleasant surprises. At Mayfair Law Group, we are committed to helping homeowners navigate the complexities of property taxes and other legal aspects of property ownership. Here’s an in-depth look at property taxes in Toronto and what you need to know.

How Property Taxes Work in Toronto

Calculation of Property Taxes
In Toronto, property taxes are calculated based on the assessed value of your property. The Municipal Property Assessment Corporation (MPAC) is responsible for assessing all properties in Ontario. MPAC evaluates properties every four years, determining their market value as of a specific valuation date. The assessed value is then multiplied by the applicable tax rate to determine the annual property tax amount.
Tax Rates
Property tax rates in Toronto consist of three main components:
Municipal Tax Rate: Set by the City of Toronto, this rate covers the cost of local services such as public transit, road maintenance, parks, and emergency services.
Education Tax Rate: Set by the Province of Ontario, this rate funds the public education system. City Building Fund Levy: This additional levy is used for major infrastructure projects, including transit and housing initiatives.
These rates are expressed as a percentage of your property’s assessed value and are subject to annual adjustments based on the city’s budget and funding needs.
Annual Property Tax Bill
Your annual property tax bill is calculated by multiplying the assessed value of your property by the combined tax rate (municipal, education, and city building fund levy). The City of Toronto issues property tax bills twice a year, typically in January and June. The bills include installment due dates and the total amount payable for the year.

What You Need to Pay

Understanding Your Tax Bill
Your property tax bill will detail the assessed value of your property, the applicable tax rates, and the total amount due. It’s essential to review your bill carefully to ensure accuracy. If you believe there is an error in your property’s assessed value, you can file a Request for Reconsideration (RfR) with MPAC or appeal to the Assessment Review Board (ARB).
Payment Options
The City of Toronto offers several payment options for property taxes, including:
Pre-Authorized Payment Plans: Monthly or six-installment plans automatically debit your bank account, helping you manage your payments more conveniently.
Online Banking: You can pay your property taxes through your financial institution’s online banking platform.
In-Person: Payments can be made at designated financial institutions, City Hall, or Civic Centres.
Late payments are subject to penalties and interest charges, so it’s crucial to pay your property taxes on time.
Tax Relief Programs
Toronto offers several tax relief programs for eligible property owners, including:
Property Tax Deferral Program: Seniors and low-income disabled homeowners may qualify to defer payment of property taxes until they sell their home.
Property Tax Increase Cancellation Program: Eligible seniors and low-income disabled homeowners may have their property tax increases canceled.
Water Rebate Program: This program provides a water rebate to eligible low-income seniors and low-income disabled homeowners.

Mayfair Law Group is here for you

Contact Mayfair Law Group today to schedule a consultation. Let us help you make sense of your property taxes and ensure you’re fully informed about your financial obligations. With our professional guidance, you can confidently manage your property taxes and protect your investment. Your journey to informed homeownership starts here, with Mayfair Law Group by your side.