How Property Taxes Are Calculated

Property taxes are calculated by multiplying the assessed value of a property by the tax rate applicable to the class of the property.

The tax rates are calculated as follows:

Step 1: Taxable Assessment X Tax Ratios = Weighted Assessment

Step 2: Levy Requirement / Weighted Assessment = Residential Tax Rate

Taxable assessment is established by the Municipal Property Assessment Corporation (MPAC). The value is based upon the current value as of January 1, 2016 and phased in over 4 years. The Ontario government has announced that the 2020 Assessment Update has been postponed. They have indicated that property assessments for the 2021 property tax year will continue to be based on the fully phased-in January 1, 2016 current values. This means your property assessment for the 2021 property tax year will be the same as the 2020 tax year, unless there have been changes to your property.

Tax Ratios set the relative tax burden amount the various property classes in comparison to the residential rate.

The levy requirement is the amount of taxes required to be raised after deducting all non-tax revenue from the total cost of providing municipal services.

The following video explains the relationship between property taxes and property assessment:

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