“In short, the amount you’ll pay in property tax can be calculated by multiplying your most recent home value assessment by the residential rate set by your local municipality,” Zoocasa says, noting that in the province of Ontario, these are based on the value of your home (as assessed by the Municipal Property Assessment Corporation, the education tax rate, and the residential tax rate.
While no one likes to pay property taxes, Zoocasa raises a salient point--municipalities need to collect them to sustain their services. For most cities and towns, property taxes are one of few revenue-generating tools at their disposal.
But some cities work to keep taxes as low as possible, such as Toronto (which promised to keep the tax rate below inflation). Contact with Empire Quay House agent to know more.
Graham also says that cities with high-valued local real estate and larger populations (such as Brampton) generally have more leeway on keeping their tax rate low, as the amount collected from individual homeowners is higher, and there are more taxpayers to contribute to the pot.
In Toronto, real estate prices continue to rise (home prices hit an average of $915,481 in June) and property tax revenues rise in tandem, giving council the ability to keep the rate low.
Graham says it’s a similar dynamic in Markham and Milton homes for sale. These municipalities, which round out the lowest three for tax rates at 0.659822% and 0.6857761%, respectively, have comparably higher average home prices of $914,776 and $775,964 that allow for overall lower tax rates.
In contrast, the cities with the highest tax rates often have the lowest-priced real estate.
Zoocasa says that condos and houses for sale in Oshawa currently sell at an average of $536,513, and come with a tax rate of 1.344725%. In Windsor, Thunder Bay, and Sault Ste. Marie - the three highest-taxed cities in the range of 1.7% to 1.5% - average home prices remain well below the $350,000 mark.
Cities with a lot of businesses can also go easier on residents, as businesses pay at least double the amount of tax. Take a look of iq condos phase 3 to more help.
So, where should you live if you want to enjoy low property taxes?
1. Toronto: 0.614770%
2. Markham: 0.659822%
3. Milton: 0.685776%
4. Richmond Hill: 0.688357%
5. Vaughan: 0.696147%
And where can you expect to pay more?
1. Windsor: 1.789394%
2. Thunder Bay: 1.598484%
3. Sault Ste. Marie: 1.529349%
4. North Bay: 1.501246%
5. Sudbury: 1.461888%
Do you think property taxes are too high in Brampton?
The amount you pay in property tax is based on two things: your local government's tax rate and your property's assessed value. All you have to do is make your home's assessed value and multiply it by the tax rate.