Property Taxes: 10% Increase 😠😠😠


You may have heard about Toronto's proposed 10% plus hike in property taxes. A scary proposition for residents, especially ones on a fixed income.


CBC News: The National- Property Taxes on the Rise Across Canada


Could this happen in Ottawa?  Not this year, but it's definitely a possibility in the future.  Ottawa passed its 2024 budget with a 2.5% increase in property taxes.  That's a small increase compared to other major cities across Ontario.  The average urban Ottawa tax bill will increase by about $105 in 2024. 

 

Cities need more funding to help with the crushing burden of inflation. The costs of everything it takes to keep a city running have increased over the last few years. An increase to your property tax bill is how the City pays for it.       


Another scary situation is what could happen in the future with your MPAC property assessment.  Homes have been taxed at assessed values from 2016; the most recent assessment was planned for 2024, but the Ontario government amended a bill late last year to avoid proceeding with the scheduled assessment.  This also happened in 2020 when the planned MPAC property assessment was delayed because of the hardships people were experiencing during Covid.  Many homes have doubled in value since 2016, and when/if Ontario finally mandates an MPAC Assessment, homeowners could be in for a shock.



How are Property Taxes calculated?

Property taxes are calculated by multiplying your home's assessed value by the municipal and education tax rates.  In the example below, the home has an assessed value of $335,000, which you multiply by the combined tax rate to find the total taxes owed.

Municipal- $335,000 x .960551% = $3,217.85
Education- $335,000 x .212% = $710.20
Total Yearly Property Tax = $3,928.05














Property taxes are an inevitable aspect of homeownership, but with knowledge and strategic planning, homeowners can navigate this financial landscape more effectively. 

By understanding the assessment process, exploring potential exemptions, and staying informed about legislative changes, homeowners can take control of their property tax obligations and make informed decisions about their real estate investments.




Chris Smith, Broker
 

  


   

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