What are Property Taxes?

Property taxes are revenue levied by the government. They are usually based on the assessed value of the property and the property tax rate or a multiplier of a certain region or municipality.

The assessments of residential properties is determined by MPAC (Municipal Property Assessment Corporation) are typically private and known only to the home owner. For resale homes this is typically included on the listing, it can be tricky for  home buyers to determine taxes when buying a new construction homes.

The chart shows the tax rates for different municipalities.

Property Taxes - Residential (2020)

How your Property Tax Bill is Calculated.

Your property tax bill is calculated by multiplying the current year phased-in property assessment value, as determined by the Municipal Property Assessment Corporation (MPAC), by Council approved City Tax Rate(s) with the City Building Fund Levy and the Education Tax Rate, as set by the Government of Ontario.


Estimated taxes on a residential property in Toronto with an Assessed Value of $950,000
Estimated property tax = Assessed Value x Total Tax Rate
= $950,000 x 0.599704%
= $5,697.18 (includes municipal, city building fund levy and education taxes)