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Property tax in Canada is your home’s assessed value times a rate, and the rate is set locally, so the same house pays a different bill in every municipality. In Toronto for 2026 the total residential rate is 0.767311%, which works out to about $5,311 on a home assessed at $692,140.
Who decides what you pay?
Several bodies share the job, and the split depends on the province. In Ontario, MPAC determines the assessment for every property. Your municipality sets its tax rates and collects the money for local services, things like garbage pickup, snow clearing, libraries and the local fire hall. The province writes the assessment rules and sets the education rate, and you pay both on one bill.
Only the Ontario setup was checked against official pages. Other provinces use their own assessment agencies and their own rules, so read your provincial or municipal page before you rely on the Ontario description.
What does a rate look like on paper?
You’ll see it written two ways. A percentage of value, like 0.77%, is one. A mill rate is the other, which is dollars of tax per $1,000 of assessed value, so 7.5 mills means $7.50 per $1,000. Both say the same thing. Multiply the value by the percentage, or divide the value by 1,000 and multiply by the mills.
Here’s how the Toronto 2026 residential rate breaks down, straight from the city’s rates page.
| Part of the rate | 2026 residential rate |
|---|---|
| City (municipal) tax | 0.605295% |
| Education tax | 0.153000% |
| City Building Fund | 0.009016% |
| Total | 0.767311% |
How much would a typical bill be?
There’s no single national average worth quoting, and one figure would hide the gap between provinces anyway. A better test is your own number. Take the assessed value from your notice and the combined rate from your municipality, then run them through the property tax calculator.
At the Toronto 2026 rate, these values give these yearly bills (rounded to the dollar).
| Assessed value | Yearly tax | Per month |
|---|---|---|
| $500,000 | $3,837 | $320 |
| $692,140 | $5,311 | $443 |
| $900,000 | $6,906 | $575 |
The middle row is the city’s own example. The other two come from the same rate and plain multiplication. Picture Priya in a Toronto semi assessed at $500,000: her bill is about $320 a month, ballpark what some people spend on a car payment, and it never shows up as a separate line unless she pays it herself.
How do you actually pay it?
Most municipalities let you pay in instalments through the year or on a monthly pre-authorized plan, so the bill isn’t one big hit. If you have a mortgage, your lender may collect a slice of the tax with each payment and pay the city for you. Check your mortgage statement to see which way yours works. Missing a due date normally adds a penalty, so set a reminder if you pay by hand.
Why did my tax change when my value didn’t?
Because the rate moves too. Municipalities set rates to raise the money their budgets need, the province sets education rates, and your bill rises or falls with both of them even in a year when the assessor never touched your value and you did nothing at all.
MPAC explains the other side of it. What matters is how your assessment changed compared with the average for your property class in your municipality. A 3% rise when the average is 5% usually means a lower tax. A rise above the average usually means a higher one.
Mistakes that cost homeowners money
Forgetting it in the budget is the classic. If you’re working out what you can afford, add the yearly tax to the mortgage payment, because lenders and your bank balance both count it. The affordability calculator is a good place to test that.
Next, confusing assessed value with price. The assessed value is set on a fixed date and won’t match what a buyer pays today. If you think yours is off, MPAC’s free AboutMyProperty tool lets Ontario owners look at the details and file a request for reconsideration. Do it before the deadline on your notice, since it won’t wait for you.
Then there’s the bill you didn’t see coming when you bought. Tax is one line next to legal fees and transfer duty, which the closing costs calculator lists. Condo owners get monthly fees on top, and the condo ownership cost calculator brings all of it together.
Finally, part-year ownership. If you buy or sell mid-year, the tax is usually split between buyer and seller on the closing statement. Our calculator has a months field for that, but your lawyer’s statement is the figure that counts.
What this page is based on
The Toronto rates and the $692,140 example are from the City of Toronto’s 2026 property tax rates page. The description of who assesses, who sets rates and how assessment changes affect your tax comes from MPAC and the Ontario government. Figures for other provinces and cities weren’t confirmed, so none are given. This site isn’t connected to any assessor, city or government.
Frequently asked questions
Who sets property tax in Canada?
It's local. In Ontario the municipality sets its rates, the province sets the education rate and MPAC assesses the value. Other provinces use their own agencies, so check yours.
What is a mill rate?
It's dollars of tax per $1,000 of assessed value. A rate of 7.5 mills is $7.50 per $1,000, or 0.75%.
Is the assessed value the same as market value?
No. It's an estimate set on a fixed date, so it can differ from what a buyer would pay today.
Why did my bill go up if my value stayed the same?
Rates change each year with municipal budgets and education rates. What also matters is how your value moved against the class average.
Can I check my assessment?
Ontario owners can use MPAC's AboutMyProperty tool and file a request for reconsideration. Other provinces have their own review steps.
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