What is property tax in Canada?
How is the property tax calculated?
How many times a year do I have to pay property taxes?
Why is my property tax so much higher this year than in previous years?
If you feel that the property tax calculation this year is unreasonable, how do you request a reassessment and appeal?
How to pay property tax? What are the consequences if payment is late?
How do I check my property tax information?
What is the difference between commercial property taxes and residential property taxes?
1. What is property tax in Canada?
Property tax is a tax that you need to pay to the government every year after you purchase a Canadian property. The amount of property tax is set by the government and the owner pays it by himself. If you fail to pay it on time, you will be charged a high fine and interest. It is a compulsory tax and must be paid regardless of the type of house or the area where it is located.
2. How is local tax calculated? What are the factors that affect the amount of tax?
Local taxes consist of three parts: Municipal tax, education tax and other tax.
Factors that affect the amount of property tax are the assessed value of the property and the municipal tax rate, education tax, and other tax rates set for the area where the property is located.
The government is responsible for assessing the value of a property. The tax rate is set by the municipal government where the property is located based on the government's fiscal situation and the type of house. In the Greater Toronto Area, the area with the highest average property tax is King City in York Region. The cities with lower tax rates are downtown Toronto, Markham, Milton, Richmond Hill or Vaughan.
3. How many times a year should property tax be paid?
The total amount of property tax to be paid each year is determined by the government, but can be paid twice, six or eleven times a year according to the owner's request.
Two, six or 11 times
4. Why is my property tax this year much higher than in previous years?
The increase in property tax is mainly due to the increase in tax rate or the increase in house appraisal price. The tax rate is determined by the local government and basically will not change. However, if the property appraisal price is unreasonable and causes the rapid increase in property tax, the owner still has the opportunity to request a re-assessment from the government.
5. If you feel that the property tax calculation for this year is unreasonable, how do you request a reassessment and appeal?
Property taxes are paid by the government agency MPAC. If the owner is not satisfied with the assessment made by MPAC, the owner can request a reassessment before March 31 of each year. If the assessment result is still not satisfactory, you can appeal within 90 days after receiving the assessment decision. The reassessment is free, but the appeal costs $75 Canadian dollars.
6. How to pay the property tax? What are the consequences if I pay late?
Generally speaking, there are three ways to pay property taxes:
1) Mail the check to the tax bureau. The mailing address is as follows:
Treasurer, City of Toronto
Box 5000
Toronto, ON M2N 5V1
2) Direct payment via online banking;
3) Alternatively, you can apply to the tax bureau to withdraw money directly from your bank account.
Property taxes are mandatory property taxes. If you pay property taxes late, you will have to pay interest and penalties. Generally, the penalty for late payment of property taxes is 1.25% of the property tax amount, and the late payment interest is 1.25% per month.
7. How can I check my property tax information?
Generally speaking, property tax information can be found on the city government website. Take Toronto as an example, here is their link:
As long as the owner knows his account number and roll number, he can check the property tax amount and payment status at any time.
8. What are the differences between commercial property taxes and residential property taxes?
The property tax rates for different types of properties vary greatly. Take Toronto's property tax calculation as an example. Here is a table for 2020.
