How is Property Tax Calculated?<\/strong><\/p>\n First, it\u2019s important to understand how your property tax rate is determined. For those who live within a municipal boundary, property taxes are made up of three elements:<\/p>\n – The assessed value of your home, as determined by the Municipal Property Assessment Corporation (MPAC). This is calculated every four years (the current assessment is from 2016, and the next is slated for 2020), and factors in your home\u2019s specific condition, features, location, and any other amenities. For example, whether your home has a pool, sizeable lot, or finished basement will be part of MPAC\u2019s consideration.<\/p>\n – The Education Tax Rate, as charged by the Province of Ontario. The proceeds of this levy are used to fund programs and repairs at nearby schools<\/p>\n – The Residential Tax Rate, as established by the municipality\u2019s city council, based on the amount of revenue they\u2019ll require to cover their annual budget.<\/p>\n If you live outside the confines of a municipality in an area that\u2019s considered rural, you\u2019ll instead pay the Provincial Land Tax, the rate of which is set by the province.<\/p>\n Property Tax Differs from City to City<\/strong><\/p>\n Because these factors can vary so widely, so too does the property tax rate across the GTA. For example, the City of Toronto has kept its residential tax rate close to that of inflation in recent years, in the range of 0.6 per cent, meaning those in the 416 pay the least amount of tax, whether for a detached home in Rosedale, or condos in downtown Toronto.<\/a><\/p>\n In comparison, Oshawa and Orangeville are taxed at the highest rate, at 1.40690 per cent and 1.40990 per cent, respectively.<\/p>\n To illustrate how property tax can impact home affordability, Zoocasa calculated the amount a homeowner would be taxed, using their municipality\u2019s residential tax rate, and the average of a home in their region, based on the June market report from the Toronto Real Estate Board. It should be noted that this sample calculation ues average home price rather than MPAC to reflect current market conditions; in actuality, a homeowner\u2019s property tax amount will likely be lower, as their MPAC will be based on the 2016 assessment.<\/p>\n Check out the infographic below to see how property taxes differ across the GTA, based on the average home price:<\/p>\n
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