Property Taxes
From BuildingHomes.ca
Greg Scott, May 23rd, 2004
It's important to understand the property taxes are relative to the municipality that you are moving into. This varies. Check your town/cities website for specific informaton.
Property taxes are calculated on the assessed value of your house, not the purchase price. This is a value calculated in Ontario by an independant corporation called the Municipal Property Assessment Corporation (MPAC).
The assessed value changes depending on the housing market in your area for the last 2 years. If a simularly classed house size is sold/bought in your area, then this may affect the average that your house will be assessed at.
According to MPAC's website, "MPAC analyzes property sales in your area. These sales provide a basis for the assessed values of similar properties. MPAC continually collects information about properties to ensure that those with similar features (age, size, location, construction, etc.) have similar assessed values."
It is nice that the value of your house goes up over time, but unless you intend to sell it, it just means you are paying more in property taxes. Property taxes are calulated based on the current assessed value:
Municipal Tax Rate multiplied by the Current Value Assessment = Municipal Portion of Tax
Education Tax Rate multiplied by the Current Value Assessment = Education Portion of Tax
Add the Municipal Portion of Tax to the Education Portion of Tax and that is the total you would pay in property taxes.
Example, if the current assessed value of your house is $260000 and your Municipal Tax Rate is 1.04%, and your Educational Portion of Tax rate is 0.3335%:
$260000 × 0.0104 = $2704.00
$260000 × 0.003335 = $867.10
$2704.00 + $867.10 = $3571.10 per year
You may have different options for paying the taxes depending on your municipality. You can pay it all at once, or in portions throughout the year. Consult your municipality for the exact details.
If you feel that the value was set too high, you do have an option to appeal the assessment. Fill out a form for a "Request for Reconsideration" and write up your reasons for why you think your assessment was incorrect and then submit it to MPAC for review. You only have a limited time to write your appeal.
Related Information
- Municipal Property Assessment Corporation
- Milton, Ontario Property Tax Information
- Burlington, Ontario Property Tax Information
- Oakville, Ontario Property Tax Information
- Mississauga, Ontario Property Tax Information
- Markham, Ontario Property Tax Information
Disclaimer: The details contained in this article are for informational purposes only and are subject to change at any time. Always consult your local municipality for information on their property tax policies.
