Updated Checked by the Tax-Services.ca editorial team How we check
There’s no single average property tax that means much, because the bill depends on where the home is and what the local council decides. We couldn’t confirm a national figure from an official source. What you can do is work out your own effective rate, which is the yearly tax divided by the assessed value, and compare that.
Why an average tells you so little
Two homes with the same price can sit in towns with very different rates. Assessed values also lag the market, so a national average blends very different places into one number that fits almost nobody. A cheap home in a high-rate town may pay more than an expensive one next door to it in a low-rate town.
Here’s how that plays out. Home A is assessed at $600,000 in a town with a 0.9% effective rate, so the bill is $5,400. Home B is assessed at $700,000 in a town at 0.6%, so the bill is $4,200. The pricier house costs $1,200 a year less to hold. That’s why a ballpark national average is a poor guide when you’re shopping.
The one real anchor we found is Toronto. The city’s 2026 residential rate is 0.767311%, and its own example is $5,311 on an assessed value of $692,140. That’s one city, though, and you shouldn’t read it as a Canadian norm.
How do I work out my effective rate?
Take the total on your bill and divide it by the assessed value on your notice. A $5,311 bill on a $692,140 value gives 0.767%. Use the tax for the same year as the value, and leave out anything that isn’t property tax, like water or garbage charges if your bill lumps them in.
Got a mill rate instead? Move the decimal. A rate of 7.5 mills is $7.50 per $1,000, which is 0.75%. The property tax calculator accepts either form, so pick whichever your municipality uses.
What does each rate mean for your budget?
The table shows what different effective rates do to a home assessed at $700,000. The rates are round numbers for comparison, not local averages.
| Effective rate | Yearly tax | Per month |
|---|---|---|
| 0.50% | $3,500 | $292 |
| 0.75% | $5,250 | $438 |
| 1.00% | $7,000 | $583 |
| 1.25% | $8,750 | $729 |
Half a point of rate is $3,500 a year on that house. So the rate matters about as much as a small change in the purchase price, and buyers rarely compare it. The Toronto example works out to about $443 a month, which is the sort of number to add to your mortgage payment before you decide what you can afford.
Is my bill too high?
Start by comparing the assessed value with what similar homes nearby have sold for, using listings or a realtor’s recent sales list for your street and the next one over, and don’t lean on a single sale. If your assessment is well above recent sales for comparable homes, ask for a review. In Ontario, MPAC’s AboutMyProperty tool shows your details and lets you file a request for reconsideration.
A lower value doesn’t always mean a lower bill, though. MPAC points out that what counts is how your assessment changed compared with the average in your property class, and the rate is applied to the whole class. A successful review cuts your share, but it won’t change the rate.
What does a bill usually include?
Most bills lump several things together: the municipal share, the education share and sometimes special charges for a local project. The effective rate you work out from the total is what matters for comparison. If a bill splits the lines, add them up yourself and keep a note of which ones are one-offs, so next year’s number isn’t a surprise.
Budget for the tax before you buy
Put the tax in next to the mortgage. The mortgage calculator gives the payment, and the yearly tax divided by twelve is the number to add. A condo adds fees, so use the condo ownership cost calculator for the full monthly picture.
Renters weighing a purchase should run the rent vs buy calculator with the tax included. Leave it out and buying looks cheaper than it is.
Common mistakes
Using the wrong rate is the big one. The education part and any special charges may sit on the bill separately, and you want the total for the comparison to mean anything.
Next is comparing your bill with a friend’s in another city. Rates come from different budgets. Last, treating last year’s bill as this year’s. Rates change, so check the new rate when your municipality publishes it.
Where the numbers come from
The Toronto rate and example are from the City of Toronto’s 2026 property tax rates page. The explanation of assessments and review comes from MPAC. The other rates above are round figures we chose for illustration, and the bill-versus-rate examples are simple arithmetic on them.
Frequently asked questions
What is the average property tax in Canada?
We couldn't confirm a national average from an official source. Rates are local, so your own effective rate is more useful.
How do I calculate my effective property tax rate?
Divide the yearly property tax on your bill by the assessed value on your notice. A $5,311 bill on $692,140 is about 0.767%.
What is the Toronto 2026 residential rate?
The city lists a total residential rate of 0.767311% for 2026, made of city, education and City Building Fund parts.
Can I lower my bill by challenging the assessment?
If the value is too high, a review can help. In Ontario you can use MPAC's AboutMyProperty tool and file a request for reconsideration.
Should I include property tax in a mortgage budget?
Yes. Add the yearly tax divided by 12 to your payment, since it's a regular cost of owning.
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