Property Taxes: Information You Should Know

Property taxes are a reality for all home owners in Toronto.  If you already own property, you undoubtedly already know about them.  If you are planning on purchasing your first home, you most certainly should make sure you are aware of how they are calculated,  how you can pay them and the penalty for not.

Property Taxes: How are they calculated?

There are a few basic things that you should understand about how your  property taxes are calculated.

  • How is your property tax calculated?  This is a simple calculation based on the assessed value of your home and the current tax rate.  For example if your house is worth $300,000 and the tax rate is 2% you would pay $6000. Click here to calculate your property taxes in the City of Toronto.
  •  Who determines the assessed value?  This is done by and organization (non-profit) called MPAC (which stands for Municipal Property Assessment Corporation).  The assessed value is meant to be indicative of what your property would sell for, but there are always exceptions so if you think your assessment isn’t fair you should contact MPAC.  If you go online they have the steps required to challenging your assessment, click here to go to the site.
  •  Who determines the tax rate?  The tax rate is a combination of your city/town council tax rate set out it its annual budget, the regional council (if applicable) and the province’s rate.  The tax is collected by the City and then disbursed as needed.  The unfortunate reality is that you have really very little control in changing the tax rate (unlike the assessed rate), unless you plan on running for office or regularly challenging your elected representative!

Property Taxes: How To Pay Them

In the City of Toronto taxes can be paid in a number of ways, click on the following links to find out more information.

 

Property Taxes: The Downside To Being Late

Do not be late with your payments as the City of Toronto (this applies elsewhere as well) WILL charge you with late payment charges. That is just the start of the collection process. there are additional charges along the way!  The list below is from the City of Toronto website and is a complete summary of the City’s collection process.  Click on the links to get the most current information about the arrears process in Toronto.

  1. Penalty/Interest Charges
  2. Property Tax Account Statements
  3. Collection Letters and Telephone Contact
  4. Final Notice
  5. Issuance of Tax Arrears to a Bailiff
  6. Municipal Tax Sale Proceedings

Speak Your Mind

*