Toronto property taxes are calculated by applying the City of Toronto’s residential tax rate to a property’s assessed value determined by the Municipal Property Assessment Corporation (MPAC). Properties are reassessed periodically based on market value, and tax bills help fund municipal services, education, and regional infrastructure. Tax bills are typically issued in January (interim bill) and May (final bill) each year.

Aspects of Toronto Property Taxes

• Assessed Value: MPAC estimates your home’s market value based on factors such as location, size, age, and recent comparable sales. The full assessed value is taxable for residential properties.

• Tax Rates: Toronto’s residential tax rate combines municipal, education, and City Building Fund components. Rates are applied per $1 of assessed value rather than through a mill rate system.

• City Building Levy: Toronto applies an additional levy dedicated to long-term infrastructure and transit expansion projects.

• Local Improvement Charges: Property owners may pay additional charges for infrastructure upgrades such as road improvements, sidewalks, or sewer installations benefiting specific neighbourhoods.

• Property Tax Relief Programs: Eligible seniors and low-income homeowners may qualify for property tax deferral or cancellation programs offered by the City.

• Appeals: Homeowners may file a Request for Reconsideration with MPAC if they believe their property assessment is inaccurate.

Important Information

• 2025 Assessment: Property values remained relatively stable after prior reassessment cycles, though neighbourhood-specific changes varied significantly across the city.

• Tax Changes: Annual tax increases are set through the City of Toronto budget process and may differ from changes in assessed value.

• Payment Options: Taxes can be paid annually, in instalments, or through the Pre-Authorized Tax Payment (PTP) program.