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Property taxes differ across Canadian provinces in how they are built more than in one headline rate. Each municipality sets its own rate, the province adds a school or education piece, and the assessed value the bill uses is rarely today’s market price, which means two homes that sell for the same money can carry very different bills. So a comparison of “Alberta versus Ontario” on rate alone tells you little.
We didn’t find a single official page that ranks the provinces by rate, so this page doesn’t pretend to. It shows how the bill works in three places and gives you the method to compare two homes yourself.
How is a property tax bill calculated?
The same arithmetic runs nearly everywhere: assessed value times a rate. British Columbia’s government writes the rate as dollars per $1,000 of value, and gives the example of $1.02 per $1,000 on a $300,000 property, which is $306. Alberta uses a mill rate, where one mill is one-thousandth of a dollar per dollar of value.
Ontario’s formula adds the municipal rate and the education rate, then multiplies by the assessed value. The assessed value there comes from MPAC, and the current value used is the one set as of 1 January 2016. Old, yes. That is why a bill can look odd next to a recent sale price.
| Place | Who sets the rate | Other pieces on the bill |
|---|---|---|
| Ontario | Municipality (municipal portion); Minister of Finance (education portion) | Education portion |
| British Columbia | Municipality, by bylaw before 15 May each year | School tax and hospital tax, collected on the municipal notice |
| Alberta | Municipality (municipal portion); province (education portion) | Provincial education requisition |
What does a rate look like in Toronto?
The City of Toronto publishes a 2026 residential rate of 0.767311%. It breaks down as a city rate of 0.605295%, an education rate of 0.153000% and a city building fund of 0.009016%. The education piece is the part the province sets, so it is the one that looks the same across Ontario.
On a home assessed at $500,000, that rate works out to about $3,837 a year. The property tax calculator lets you enter your own assessed value and rate, or a mill rate, and shows the monthly cost.
Why comparing two provinces by rate misleads
Try a thought experiment with round numbers. A home assessed at $500,000 at a rate of 0.5% pays $2,500. The same assessed value at 1% pays $5,000. That looks like a clean doubling, but only if the assessments are on the same footing.
They often aren’t.
If one province values homes on a recent date and another on a date years back, the same market price can carry very different assessed values. A low rate on a high assessment can cost more than a high rate on a low one, and you’d never see that by reading rate tables alone.
So compare the dollar bill on a comparable home, not the rate. Ask for last year’s bill. And check the year.
What to add up before you buy in another province
Property tax is one line in a larger cost. It’s a big one, though. Land transfer tax at closing and your mortgage payment matter at least as much. Run the closing costs calculator for the one-time cost, and the mortgage calculator for the monthly payment, then add the tax bill divided by twelve.
If you’ll rent the place out, the tax bill is a rental expense, and the rental income tax calculator shows what is left after income tax. The rental property calculator runs the tax bill into the cash flow.
Mistakes and limits
Reading an assessment notice as a bill is the classic. In Ontario, MPAC says an assessment notice is not a tax bill, and the municipality sends the bill separately.
Another? Leaving out the extra levies. BC’s notice carries school and hospital tax, and Alberta’s carries the education requisition. A quoted “municipal rate” may not include them.
We didn’t confirm the average residential rate for any province, grants or rebates in each province, or the rates for Quebec and the Atlantic provinces. For those, use the provincial or municipal page for your address.
Where the numbers come from
The formulas come from Ontario’s property tax page, the British Columbia government’s municipal taxes page and the Alberta government’s property tax page, read on 30 September 2026. The Toronto rate comes from the City of Toronto’s rates page for 2026.
Frequently asked questions
Which province has the lowest property tax?
We couldn't confirm a ranking on an official page. Rates and assessed values differ by municipality, so compare the dollar bill on a similar home instead.
Who sets property tax rates in Ontario?
Municipalities set the municipal portion. The Minister of Finance sets the education portion.
How do you work out property tax from a mill rate?
Multiply the assessed value by the mill rate and divide by 1,000. A rate of 7.5 mills on $400,000 gives $3,000.
Is an assessment notice the same as a tax bill?
No. In Ontario, MPAC sends the notice when something changes and the municipality sends the bill each year.
What is Toronto's residential property tax rate for 2026?
The City of Toronto lists 0.767311%, made up of city, education and city building fund parts.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.