Understanding Property Taxes in Toronto and Surrounding Communities:
What Homebuyers Need to Know in 2025
Property taxes represent a significant ongoing expense for homeowners in the Greater Toronto Area. These taxes fund essential municipal services and vary considerably between different communities. Understanding the property tax landscape is crucial for budgeting and making informed decisions.
Property Tax Rates by Municipality
Property tax rates in the GTA are expressed as a percentage of the assessed value and vary significantly by location:
City of Toronto
- Current residential tax rate: Approximately 0.61% of assessed value (2025)
- Average annual property tax: $4,275 for a property assessed at $700,000
- Payment options: Monthly pre-authorized payments, installment plans, or annual lump sum
- Special programs: Tax relief available for low-income seniors and persons with disabilities
Durham Region
- Oshawa: Approximately 1.29% of assessed value
- Whitby: Approximately 1.09% of assessed value
- Ajax: Approximately 1.13% of assessed value
- Pickering: Approximately 1.07% of assessed value
- Clarington: Approximately 1.15% of assessed value
Durham Region generally has higher tax rates than Toronto proper, but lower property values often result in comparable or lower actual tax amounts.
North York (Toronto)
As part of Toronto, North York properties are subject to the same tax rate of approximately 0.61% of assessed value. However, higher average property values in certain North York neighborhoods can result in higher actual tax payments.
Etobicoke (Toronto)
Etobicoke properties fall under Toronto’s tax rate of approximately 0.61%. Like North York, property values vary widely, affecting the actual tax amount.
Scarborough (Toronto)
Scarborough properties are subject to Toronto’s tax rate of approximately 0.61%. Generally lower property values in Scarborough compared to central Toronto often result in lower actual tax payments.
Mississauga
- Current residential tax rate: Approximately 0.80% of assessed value (2025)
- Average annual property tax: $5,600 for a property assessed at $700,000
- Payment options: Monthly, quarterly, or annual payments
- Special programs: Tax deferral programs for eligible seniors and low-income residents
Brampton
- Current residential tax rate: Approximately 0.97% of assessed value (2025)
- Average annual property tax: $6,790 for a property assessed at $700,000
- Payment options: Pre-authorized payment plan, installments, or annual payment
- Special programs: Tax assistance for eligible seniors and persons with disabilities
Assessment Process
Property taxes are based on the assessed value determined by the Municipal Property Assessment Corporation (MPAC):
How Properties Are Assessed
- MPAC conducts province-wide assessments every four years
- Current values are based on the January 1, 2024 valuation date
- Assessments consider:
- Property size and dimensions
- Age of the property and any renovations
- Location and neighborhood factors
- Property type and construction quality
- Market conditions at the valuation date
Assessment Appeals
If you believe your property assessment is incorrect:
- Request a Reconsideration (RfR) from MPAC within 90 days of receiving your assessment notice
- If unsatisfied with the RfR result, file an Appeal with the Assessment Review Board (ARB)
- Provide evidence supporting your claim, such as:
- Comparable property sales in your area
- Property condition issues not reflected in the assessment
- Factual errors in MPAC’s property description
- Recent private appraisals
Phased-In Assessment Increases
To minimize the impact of significant assessment increases:
- Assessment increases are typically phased in over a four-year period
- Decreases in assessment value are applied immediately
- This system helps prevent dramatic tax increases due to rapidly rising property values
Payment Options and Schedules
Municipalities offer various payment methods to accommodate different preferences:
Pre-Authorized Payment Plans
- Monthly plans: Equal payments withdrawn automatically throughout the year
- Installment plans: Automatic withdrawals on scheduled due dates
- Benefits: Avoid late payment penalties and simplify budgeting
- Enrollment: Available through municipal websites or tax offices
Installment Options
- Most municipalities offer 2-6 installments per year
- Due dates vary by municipality but typically include payments in:
- February/March
- May/June
- August/September
- October/November
Annual Payment
- Single lump-sum payment
- Often due in February or March
- May qualify for early payment discounts in some municipalities
Payment Through Mortgage
- Many lenders offer property tax payment as part of mortgage payments
- Taxes are collected monthly with mortgage payment
- Lender remits payment to municipality on due dates
- Simplifies budgeting but may include administration fees
Tax Rebates and Incentives
Several programs can help reduce property tax burden:
First-Time Homebuyer Rebates
- Toronto Land Transfer Tax Rebate: Up to $4,475 for eligible first-time buyers
- Ontario Land Transfer Tax Rebate: Up to $4,000 for eligible first-time buyers
- Combined savings: Up to $8,475 for properties in Toronto
- Eligibility: Must be a first-time homebuyer and occupy the property as principal residence
Home Renovation Tax Credits
- Home Accessibility Tax Credit (HATC): Federal credit for seniors and persons with disabilities
- Seniors’ Home Safety Tax Credit: Ontario credit for seniors’ home modifications
- Energy efficiency rebates: Various municipal and utility provider programs
Heritage Property Tax Reduction
- Properties designated under the Ontario Heritage Act may qualify for tax reductions
- Typically 10-40% reduction in property taxes
- Requires maintenance of heritage features
- Application through municipal heritage departments
Vacancy Rebate Programs
- Some municipalities offer rebates for vacant commercial and industrial properties
- Residential vacancy rebates have been largely eliminated
- Requirements include minimum vacancy periods and application deadlines
Comparison of Tax Rates Across Communities
Understanding the relative tax burden can influence purchase decisions:
Effective Tax Rate Comparison
For a property with an assessed value of $700,000:
|
Municipality
|
Tax Rate
|
Annual Tax
|
Monthly Cost
|
|---|---|---|---|
|
Toronto
|
0.61%
|
$4,275
|
$356
|
|
Mississauga
|
0.80%
|
$5,600
|
$467
|
|
Brampton
|
0.97%
|
$6,790
|
$566
|
|
Pickering
|
1.07%
|
$7,490
|
$624
|
|
Whitby
|
1.09%
|
$7,630
|
$636
|
|
Ajax
|
1.13%
|
$7,910
|
$659
|
|
Clarington
|
1.15%
|
$8,050
|
$671
|
|
Oshawa
|
1.29%
|
$9,030
|
$753
|
Value Proposition Analysis
When considering property taxes in purchase decisions:
- Toronto: Lowest tax rate but highest property values
- Durham Region: Higher tax rates but lower property values
- Mississauga: Moderate tax rate with high property values
- Brampton: Higher tax rate with more moderate property values
The total cost of ownership should consider both purchase price and ongoing tax obligations.
Future Tax Considerations
Several factors may impact future property tax obligations:
Planned Rate Changes
- Most municipalities have published multi-year budget plans
- Toronto has committed to keeping increases at or below inflation
- Durham Region municipalities have projected increases of 2-4% annually
- Mississauga and Brampton have indicated 3-5% increases in coming years
Infrastructure Development Impact
Major infrastructure projects often influence property taxes:
- Transit expansions
- Community center developments
- Road and utility upgrades
- New school construction
Reassessment Impacts
The next province-wide reassessment will reflect market changes:
- Areas with rapid appreciation may see larger increases
- Phased-in implementation helps mitigate immediate impact
- Different property types may be affected differently
Tax Planning Strategies
Several approaches can help manage property tax obligations:
Verification of Assessment Accuracy
- Review your property assessment notice carefully
- Compare with similar properties in your neighborhood
- Ensure all property details are correctly recorded
- Request reconsideration if discrepancies are found
Timing Purchase Decisions
- Property tax adjustments are typically made at closing
- Purchasing later in the tax year can defer large initial payments
- Understanding payment schedules helps with cash flow planning
Renovation Considerations
- Major renovations can trigger reassessment
- Energy efficiency improvements may qualify for rebates
- Heritage designations may provide tax advantages
- Timing renovations around assessment cycles can be strategic
Senior and Low-Income Programs
- Most municipalities offer deferral programs for eligible seniors
- Income-based assistance programs available in many communities
- Application deadlines vary by municipality
- Programs typically require annual renewal
Understanding property tax obligations is essential for accurate budgeting and informed purchase decisions. While higher-tax municipalities may offer lower purchase prices, the long-term cost of ownership must consider these ongoing expenses. Working with real estate professionals familiar with the tax implications across different GTA communities can help buyers make decisions aligned with their financial goals and lifestyle preferences.