How To Calculate Your Property Tax in Canada

Property taxes may not be the most exciting part of owning a home, but they’re essential. These taxes help keep your local services running — from road repairs and garbage collection to schools and libraries. So, understanding how they’re calculated can help you avoid surprises and stay on top of your homeowner budget.
Let’s break down how property taxes work in Canada and how you can easily calculate what you’ll owe.

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What Exactly Is Property Tax?

Property tax is a yearly charge imposed by your local municipality (or province, in some rural areas). It’s based on your home’s assessed value, and the money goes toward funding essential community services — think police, fire departments, snow removal, and public parks.
If you live outside a municipality — say, in remote Northern Ontario — the province may levy a Provincial Land Tax (PLT) instead. But the idea is the same: your home helps pay for the community you live in.

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How Property Value Is Assessed

Before you can calculate your tax, you need to know your home’s assessed value — this is different from your market value. Property assessment bodies (like MPAC in Ontario or BC Assessment in British Columbia) determine this value using:

• Your home’s purchase price
• Its location and neighbourhood
• Property size and age
• Recent sales of similar homes nearby

Each province has its own assessment cycle — every 1 to 4 years.

Here’s the Basic Property Tax Formula

Assessed Property Value × Local Tax Rate = Property Tax Owed
Example:
Let’s say your home in Toronto is assessed at $1,000,000, and the tax rate is 0.631933%.

$1,000,000 × 0.00631933 = $6,319.33

So, you’d owe about $6,319 in property taxes that year.

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Interim Property Taxes: What’s That All About?

Most cities don’t finalize tax rates until mid-year. To keep things running, they issue interim tax bills — usually based on 50% of last year’s total taxes.
So, in January, you might pay half your last year’s taxes. Once the final rate is set, your second half of the year is adjusted accordingly:

• If the final rate is higher, you’ll owe more in the second installment
• If it’s lower, you’ll owe less

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Comparing Tax Rates in Major Canadian Cities

Let’s use a $500,000 home to see how rates vary by city:

Toronto, ON (0.631933%)

$500,000 × 0.00631933 = $3,159.67

Kingston, ON (1.399366%)

$500,000 × 0.01399366 = $6,996.83

Montreal, QC (0.673600%)

$500,000 × 0.006736 = $3,368.00

Vancouver, BC (0.269293%)

$500,000 × 0.00269293 = $1,346.47

Calgary, AB (0.714980%)

$500,000 × 0.0071498 = $3,574.90

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Frequently Asked Questions

How often do I pay property tax in Canada?
It varies by municipality. You might pay quarterly, semi-annually, or once a year.
What happens if I miss a property tax payment?
Late fees, interest charges, and potentially a lien on your home. In extreme cases, municipalities can take legal steps to recover unpaid taxes.
Are property taxes based on current market value?
No — they’re based on the assessed value, which is updated on a set schedule (often every few years).
Where can I find my tax rate?
Your municipality’s website is the best source for up-to-date rates and payment schedules.

Final Thoughts: Stay Ahead of the Taxman

Property tax is an unavoidable part of homeownership, but it doesn’t have to be a mystery. By understanding how your property’s assessed and what your local tax rate is, you can budget smarter and avoid surprises.

Want to Know Your Local Property Tax?
Property tax rates vary by city, province, and home value. Use our free calculator to estimate your annual tax — or talk to an expert who can walk you through it, step by step. Try the Property Tax Calculator