Market update: how Ontario property taxes are calculated and why they differ

Ontario property tax has two parts. The Municipal Property Assessment Corporation, MPAC, assigns each property an assessed value. Each municipality then sets its own tax rate to fund its budget, and education rates are added on top.

That is why property tax differs so widely across the province. A municipality with a large commercial tax base and high property values can fund services at a lower residential rate than a smaller municipality with fewer assessment sources.

When comparing homes in different municipalities, compare the annual bill, not the rate alone, and remember that renovations and additions can change assessment. If you believe an assessment is wrong, MPAC has a Request for Reconsideration process with deadlines.