What is property tax?
Read about property tax, what it’s used for and how your annual property tax amount is calculated if you are a home owner.
Why are mortgages so expensive in Canada?
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Property tax provides revenue for municipalities, provinces and territories. Municipalities collect this tax from property owners to pay for services like roads, schools, parks and public transit. They hand over a portion to the province or territory in which the property is located to help pay for services provided by those levels of government.
Canadian municipalities use market value assessment to set property tax rates. The tax owing on your property each year is calculated by multiplying the assessed value by the millage rate, or mill rate. The mill rate is the rate per $1,000 of assessed value. Different rates apply to residential and commercial property.
Example: “In 2021, Canadian commercial property tax rates per $1,000 of assessed value were on average 2.7 times higher than residential rates, although the range varied widely, from 1.5 in Regina to 4.2 in Montreal.”
Read more about real estate:
- Renting vs. home ownership: Can you be financially secure without buying?
A Certified Financial Planner compares the cost and long-term investment potential—and, just as importantly, the emotional motivations behind renting or buying. - Can we gift cash or property to our kids tax-free?
Not all gifts to family are treated the same by the CRA. Here’s what you need to know - What are the tax implications of selling U.S. real estate?
Mary and Vic are selling a property in the U.S. and want to know what the capital gain tax implications are on both sides of the border. Here’s how it works.
- How much you need to earn to afford a home in Toronto and the GTA
Affording a home in Canada’s most populous region requires having a high household income. We break down the numbers by property type and city in the GTA. - Buying a second home: How it works in Canada
Whether it’s for yourself or it’s an investment, here’s what you should know about the rules, requirements and financial implications of buying a second property.
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