Mortgage Basics #Home Buying

Property Taxes by Province in Canada: Highest to Lowest


Owning a home comes with a series of financial responsibilities that you would have to fulfill. If you didn’t buy your home outright, then you would have to make mortgage payments and maybe even default mortgage insurance. There would also be occasional maintenance costs to keep your property in top shape. 

In addition to all of these payments, there is another that is mandated for every homeowner whether they purchased via mortgage or outright. Matter of fact, failure to pay would be an outright violation of mortgage terms. This charge is the Canada property tax. So, what is property tax?

Key Takeaways

  • Property taxes are paid either quarterly, semi-annually, or annually depending on the municipality and your payment is determined using the assessed value of your home 
  • Rates may vary from year to year but typically range between 0.5% to 2.5%
  • When comparing city to city, one with a higher tax rate may pay a lower sum than the other with a lower tax rate as a result of average home prices in that city 

What Are Property Taxes?

There are three major taxes that households in Canada pay; 

  • Income tax
  • Sales tax
  • Property tax

Compared to the other two tax types, property tax is unique in that it is tax paid on an asset rather than financial flow. To determine the amount to be paid, the value of the property is considered rather than the owner’s equity.  

House tax in Canada is paid to the local government while renters pay theirs alongside rent. The money paid is then used by the municipal government to provide necessary services like garbage collection, snow removal, policing, fire protection, and water. The provincial government is responsible for financing as well as determining the framework of municipal services. 

As a result, the services rendered may vary from province to province as a result of the autonomous authority that some municipalities may hold. Property taxes remain the primary revenue source for local governments country-wide, and this is irrespective of the services provided. Other income sources could be subsidies provided by the province or grants. 

What Are Property Taxes Based On?

Property taxes are based on assessed value. So, how does property tax work?

Real estate tax canada, particularly homeowner tax is determined by taking the assessed value of the property and then multiplying it by the tax rate, otherwise known as mill rate. Mill rate is expressed as some dollars for every $1,000 of assessed value. Non-residential properties are taxed higher than residential properties. 

Municipalities all through the country carry out assessments once a year and then set a property tax rate. This usually ranges between 0.5 and 2.5%. In essence, property taxes are not exactly determined by property size. The market value of your home, which may typically vary from year to year as a result of other properties around, is then multiplied by your municipality’s property tax rate.

For instance, if your home has a market value of $400,000, and the municipality tax rate is set at 1.45%, then your property tax would be:

 $400,000 (market value of the home) x 1.45% (property tax rate)

= Property taxes: $5,800 

You would be required to pay $5,800 in property taxes that year. 

It is important to note that ability to pay is not factored into calculating property taxes, and this can become a burden for homeowners. 

Provinces + Cities Ranked By Property Tax 

This table details property tax by province and city in Canada. If you are wondering how much is property tax or what is the average cost of property taxes, this table provides the information you need:

Provinces Residential Tax RateTaxes for your home’s assessed value of $250,000Taxes for your home’s assessed value of $500,000Taxes for your home’s assessed value of $1,000,000
New Brunswick 
Saint John 1.78500%$4,463$8,925$17,850
Fredericton 1.42110%$3,553$7,106$14,221
Ontario 
Toronto0.599704%$1,589$3,178$6,355
Burlington0.81519%$2,038$4,076$8,152
Ottawa1.06841%$2,671$5,342$10,648
Mississauga0.82348%$2,059$4,117$8,235
Waterloo1.10785%$2,770$5,539$11,078
Kitchener 1.12975%$2,824$5,649$11,297
Hamilton 1.26196%$3,155$6,310$12,620
Guelph1.17125%$2,928$5,856$11,713
London 1.35082%$3,377$6,754$13,508
Manitoba 
Winnipeg 1.24871%$3,122$6,244$12,487
Alberta 
Calgary0.63573%$1,589$3,179$6,357
Edmonton0.86869%$2,172$4,343$8,687
Lethbridge 1.11067%$2,777$5,553$11,107 
Nova Scotia 
Halifax 1.10850%$2,771$5,542$11,085
Saskatchewan
Saskatoon0.86562%$2,164$4,328$8,656
Regina1.07445%$2,686$5,372$10,745
Quebec 
Montreal 0.76720%$1,918$3,836$7,672
Quebec City 0.87780%$2,195$4,389$8,778
Newfoundland & Labrador
St. John’s 0.73000$1,825$3,650$7,300
British Columbia 
Vancouver0.24683%$617$1,234$2,468
Kelowna0.52605%$1,315$2,630$5,260
Victoria0.52035%$1,301$2,602$5,204
Abbotsford0.51300%$1,283$2,565$5,130

The table above shows that British Columbia is the province with lowest taxes. So, if you are looking for the lowest property taxes in Canada, this province is your best bet. 

Quebec property tax is relatively low as well compared to New Brunswick which has the highest property taxes in Canada. Property tax rate comparison shows that property taxes in some provinces are more than 2 times that in other provinces. 

Ultimately, it is somewhat difficult to estimate typical property tax except the province is known. The average property tax rate is also determined by province. 

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Property Taxes Will Vary from City to City

Within the same province, property taxes also vary city to city. Vancouver has the lowest property rate at 0.24683% which is half the next best rate – Abbotsford, BC at 0.51300%. Cities in British Columbia generally rank as those with the lowest property rates. 

However, a low tax rate does not necessarily translate to lower tax payments especially if house prices are higher on average.

For instance, Toronto’s tax rate of 0.599704% is equivalent to about $12,437 in the way of property taxes going by the average price of Single-Family Detached homes ($2,073,989) as of February 2022. This answers how much is property tax in Toronto.

On the other hand, Edmonton’s tax rate is at 0.86869%, which is about 1.4 times Toronto’s. However, average home value is around $493,543 as of February 2022, translating to only $4,287.35 in property taxes.

Similarly, Montreal property tax rate is higher, but the actual sum is lower as a result of the average price of homes. 

This disparity can be found in various cities, and if you are wondering how much is property tax in Ontario, it follows the same pattern. Property tax rates Ontario are relatively low, but upon calculations, the actual sum turns out to be quite substantial. The average property tax in Ontario is relatively higher compared to other provinces.  

You can use a general Canada property tax calculator or for more specificity, you can calculate by city. For instance, to find out how much are property taxes in Winnipeg, you could use a Winnipeg property tax calculator. House taxes Winnipeg are quite substantial as well. 

Final Thoughts

While preparing for homeownership, it is important to find the answer to questions like how much does property tax cost. This helps you to plan ahead and maintain a firm grip on your finances. Envisaging pro tax Canada can help to avoid defaulting on any payments. 


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