History of Ontario’s Property Tax
First introduced in 1849, Ontario’s Property Tax was created with the Municipal Act (or Baldwin Act) as the act constituted a municipal structure with cities, towns, and villages along with the creation of property tax that municipalities must collect that would also support schools. After the 1960s, the post-war boom led to a series of reforms to the tax system throughout the 1990s for which new elements such as exemptions under certain conditions were modified. Up to this day, Ontario’s tax system has experienced steady growth and no major changes.
Calculating Toronto’s Property Tax
Toronto itself has the lowest property tax rate in the province as it is more densely populated compared to the other cities. The tax is calculated by multiplying the current year property-value assessed by the Municipal Property Assessment Corporation (MPAC) with the total tax rate which consists of:
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Council-approved City Tax Rate
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City Building Fund Levy Rate
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Education Tax Rate as set by the Ontario Provincial Government
For example, the final tax rate in 2019 was 0.614770% which included an education rate of 0.161000%, a municipal rate of 0.451568%, and a city building fund rate of 0.002202%. The final tax rate in 2020 was 0.599704% which included an education rate of 0.153000%, a municipal rate of 0.440230%, and a city building fund rate of 0.006474%.
You can use internet calculators to make quick and easy estimates of the amount of your property tax: this Toronto property tax calculator calculates your property tax using either your home's MCAP assessed value or your home's most recent market price.
Elements in Toronto’s Property Tax Bill
Toronto issues two property tax bills a year through mail with interim bills issued in January and final bills issued in May, each can be paid in three instalments. Depending on your property, you may also be subject to Supplementary and/or Omitted Tax Bills if your use of property changes, land is omitted from the assessment roll, or there has been major construction on the property. If that is the case, MPAC will issue you a Property Assessment Change Notice. Other additional charges that could be added to your property tax account include past-due utility bills, Toronto Police Service, and Municipal Licensing Standards charges. All payments must be provided before the due-date to avoid penalty or interest on your bill.
