Toronto is Planning to increase Property Tax Rates by 10.5%

In a recent revelation, Toronto has set the stage for a 10.5% increase in property taxes for the year, making waves across the city. However, what often goes unnoticed is that despite the significant hike, Toronto boasts one of the lowest property tax rates in the entire country.

The Budget Unveiled

During a budget committee meeting last week, the city laid out its proposed 2024 budget, featuring a 9.5% surge in residential taxes and an additional 1.5% for the building levy. The combined effect results in a substantial 10.5% annual increase for property owners, translating to a noteworthy $321 added to homeowners’ bills annually, or $26.75 monthly.

The Financial Landscape

Amidst this fiscal move, it’s crucial to delve into the financial intricacies of the city. Toronto’s operating budget stands at a staggering $17 billion, while the 2024-2033 capital budget and plan project an even more substantial $49.8 billion. This financial roadmap is strategically designed to combat inflation and safeguard core services, including transit, shelters, and community safety.

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National Landscape: A Comparative Analysis

Contrary to public reaction, data reveals that Toronto’s proposed double-digit increase is not as groundbreaking when compared to other major cities across Canada. The Montreal Gazette reported a nearly five percent rise in Montreal’s property taxes, marking the highest in 13 years. Meanwhile, Vancouver is gearing up for a 7.4% increase, showcasing the fiscal challenges faced nationwide.

City2023 Residential Tax Rate
St. John’s0.83%
Municipal Tax Rates in Canada

Note: All data listed was sourced from applicable municipal websites only and may include taxes/fees other than property tax alone (i.e. education tax).

As an example, in Ontario, your property tax rate (and the education property tax rate) are multiplied by the assessed value of your property to give you how much you owe in property taxes.

What Is the Highest Property Tax Rate in Canada?

According to our research, cross-referenced with various other sources, Winnipeg has the highest property tax rate in Canada at 2.64%.

What Is the Lowest Property Tax Rate in Canada?

According to our research, cross-referenced with various other sources, Vancouver has Canada’s lowest property tax rate of 0.28%

What Is the Average Property Tax Rate in Canada?

Property taxes vary greatly in Canada, ranging from 0.28% to over 2.6%. However, across the major cities Forbes Advisor Canada surveyed, the average tax rate is 1.12%.

Forbes Insights: The Municipal Tax Rates in Canada

Forbes, a prominent financial media company, sheds light on the municipal tax rates across Canada as of 2023. Vancouver takes the lead with the lowest property tax rate at 0.28%, while Winnipeg holds the record for the highest at 2.64%. In this spectrum, Toronto emerges as a frontrunner, currently claiming the fourth position among the 12 major cities, with a modest property tax rate of 0.67%.

Greater Toronto Area’s Ripple Effect

Zooming into the Greater Toronto Area (GTA), the proposed tax adjustments ripple through neighboring cities. Brampton is poised for a 1.9% increase, and Mississauga follows closely with a 2.34% uptick. This interconnected fiscal landscape emphasizes the broader regional impact of Toronto’s financial decisions.

Conclusion: Navigating the Fiscal Terrain

In conclusion, Toronto’s recent decision to increase property taxes by 10.5% may have stirred some public backlash, but a closer examination reveals a nuanced fiscal strategy. Positioned against other major cities in Canada, Toronto’s property tax rates remain relatively modest, underscoring the complex balancing act required to sustain essential services amidst economic challenges. As the city charts its financial course, residents and stakeholders alike are left to navigate the evolving fiscal terrain, cognizant of the broader national context and the interconnected dynamics of the Greater Toronto Area.