Canada Property Tax Guide 2026
Highest to Lowest Property Taxes Across Canada in 2026
Property taxes are among the most predictable yet misunderstood costs of homeownership in Canada. Unlike mortgage rates, which fluctuate with the bond market, property tax rates are set annually by the municipality. However, they both directly affect your mortgage qualification and long-term affordability. Understanding how property taxes vary by province and city helps buyers and homeowners anticipate real housing costs beyond the purchase price.
Property tax rates reflect how municipalities fund services, how property values are assessed, and how local budgets are structured. A lower tax rate does not always translate into a lower tax bill, and higher rates often exist in markets where home prices are more affordable. Looking at both the property tax rate and the dollar impact of the property values provides a clearer picture of housing costs in the area where you’re looking to purchase your home.
Key Takeaways
- Property tax rates vary widely across Canada, driven by municipal funding needs and assessed property values.
- Lower tax rates often coincide with higher home prices, while higher rates are common in lower-priced markets.
- Property taxes affect affordability, cash flow, and your mortgage qualification.
What Are Property Taxes?
Property taxes are annual taxes charged by municipal governments on real estate. They are calculated using a property’s assessed value and the local municipal tax rate based on the property’s zoning. Typically, commercial and industrial properties carry the highest tax rates in most municipalities.
Revenue collected from property taxes funds essential services such as road maintenance, snow removal, waste management, transit, policing, fire protection, schools, and community infrastructure. Municipalities rely heavily on property taxes to operate, and those tax rates reflect local service demand, population density, and access to alternative revenue sources.
How Property Taxes Are Calculated
Municipalities calculate property taxes by multiplying the assessed value of a property by the applicable tax rate. Provincial assessment authorities determine assessed values and may differ from current market values, particularly in rapidly changing housing markets. Property tax assessments can lag market pricing by years. Using current property tax rates and market home prices for your subject property is a conservative way to ensure you’re assessing your homeownership costs accurately.
For example, the average home assessed at $1,114,800 in Vancouver, at a tax rate of 0%, would generate an annual property tax bill of $11,148. Comparatively, an average home in Saint John is priced at $341,100, with a property tax rate of 0.02%, generating an annual property tax bill of $5,389.
This comparison explains why both the tax rate and the assessed value matter equally when comparing housing costs across cities with widely varying property tax rates. In a denser city like Vancouver with higher property values, the municipal budget can be balanced with lower municipal taxes. Additionally, Vancouver has more commercial and industrial businesses, which increases the taxes the city can collect compared to a smaller city such as Saint John.
Provinces with the Highest and Lowest Property Taxes
| Location | Property Tax Rate | Average Home Price | Monthly Property Tax | Annual Property Tax |
|---|---|---|---|---|
| Canada | 1.00% | $660,300 | $550 | $6,603 |
| British Columbia | 0.29% | $894,000 | $811 | $9,732 |
| Alberta | 0.71% | $498,200 | $554 | $6,647 |
| Saskatchewan | 1.33% | $359,000 | $464 | $5,569 |
| Manitoba | 2.64% | $392,045 | $1,031 | $12,370 |
| Ontario | 1.26% | $749,400 | $674 | $8,094 |
| Quebec | 0.71% | $529,600 | $574 | $6,885 |
| New Brunswick | 1.58% | $334,100 | $710 | $8,520 |
| Nova Scotia | 1.60% | $412,900 | $378 | $4,542 |
| Prince Edward Island | 1.59% | $373,300 | $520 | $6,234 |
| Newfoundland | 1.07% | $335,100 | $279 | $3,351 |
Residential property taxes may vary by zoning and property type. Rates for Québec and its cities and municipalities may not include school taxes, which are charged separately. Municipal taxes for residential properties in Manitoba are calculated on only 45% of the property value. Municipal property taxes in Saskatchewan are calculated only on 80% of the assessed value of residential property. Information provided for educational purposes. Please consult the municipality where your subject property is located to confirm the correct mill rate to use for your homeownership carrying costs or mortgage qualification. Mortgage lenders will qualify using the property taxes listed on the MLS listing from Realtor.ca or the most current property tax bill for a private sale.
Provinces With the Lowest Property Tax Rates
British Columbia consistently has some of the lowest property tax rates in the country. Cities like Vancouver and Victoria benefit from high assessed values and higher population density, allowing municipalities to raise sufficient revenue without higher municipal tax rates. Despite the low percentage, high home prices often result in meaningful monthly tax costs.
Alberta also maintains relatively low property tax rates across major cities. When combined with more moderate home prices, this keeps monthly property taxes comparatively manageable, particularly for first-time homebuyers and families.
Provinces With the Highest Property Tax Rates
Manitoba, New Brunswick, and parts of Atlantic Canada feature some of the highest municipal property tax rates in Canada. These regions often rely more heavily on property taxation due to smaller tax bases and fewer alternative revenue sources.
Higher rates are frequently paired with lower home prices, which helps contain the total dollar amount homeowners pay each month, even when the headline percentage appears high.
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Major Cities With the Highest and Lowest Property Taxes Across Canada
| City | Property Tax Rate | Average Home Price | Monthly Property Tax | Annual Property Tax |
|---|---|---|---|---|
| Victoria | 0.30% | $865,000 | $721 | $8,650 |
| Vancouver | 0.44% | $1,114,800 | $929 | $11,148 |
| Calgary | 0.66% | $553,900 | $462 | $5,539 |
| Edmonton | 1.01% | $408,300 | $466 | $5,595 |
| Regina | 1.34% | $330,900 | $376 | $4,515 |
| Saskatoon | 1.55% | $417,700 | $376 | $4,515 |
| Winnipeg | 2.72% | $380,400 | $865 | $10,378 |
| Guelph | 1.40% | $719,700 | $791 | $9,497 |
| Hamilton | 1.43% | $725,200 | $861 | $10,327 |
| Kitchener | 1.36% | $640,100 | $679 | $8,147 |
| London | 1.68% | $552,800 | $725 | $8,696 |
| Mississauga | 1.04% | $973,300 | $811 | $9,733 |
| Ottawa | 1.23% | $615,500 | $613 | $7,359 |
| Toronto | 0.76% | $942,300 | $785 | $9,423 |
| Kingston | 1.55% | $527,600 | $650 | $7,800 |
| Windsor | 2.10% | $573,000 | $971 | $11,648 |
| Central Quebec | 0.70% | $340,200 | $300 | $3,594 |
| Estrie | 1.18% | $457,100 | $495 | $5,942 |
| Gatineau | 0.73% | $469,937 | $392 | $4,699 |
| Mauricie | 0.99% | $315,200 | $422 | $5,068 |
| Montreal | 0.90% | $573,300 | $478 | $5,733 |
| Quebec City | 0.85% | $435,700 | $363 | $4,357 |
| Saguenay | 1.12% | $358,648 | $526 | $6,318 |
| Sherbrooke | 0.76% | $512,456 | $480 | $5,756 |
| Trois-Rivieres | 0.92% | $417,336 | $485 | $5,824 |
| Fredericton | 1.87% | $351,200 | $389 | $4,666 |
| Moncton | 1.36% | $381,800 | $453 | $5,433 |
| Saint John | 2.12% | $341,100 | $449 | $5,389 |
| Halifax | 0.61% | $543,000 | $498 | $5,978 |
| St. John’s | 0.91% | $395,100 | $329 | $3,951 |
Residential property taxes may vary by zoning and property type. Rates for Québec and its cities and municipalities may not include school taxes, which are charged separately. Municipal taxes for residential properties in Manitoba are calculated on only 45% of the property value. Municipal property taxes in Saskatchewan are calculated only on 80% of the assessed value of residential property. Information provided for educational purposes. Please consult the municipality where your subject property is located to confirm the correct mill rate to use for your homeownership carrying costs or mortgage qualification. Mortgage lenders will qualify using the property taxes listed on the MLS listing from Realtor.ca or the most current property tax bill for a private sale.
Cities With the Lowest Property Tax Rates
Large urban centres with high property values and dense populations tend to have the lowest municipal property tax rates. Cities such as Vancouver, Montreal, Toronto and Calgary collect sufficient revenue from a broad and valuable tax base, allowing them to keep rates low without sacrificing service levels. While the percentage applied is modest, elevated home prices in these markets often translate into higher monthly property tax bills in dollar terms.
Cities With the Highest Property Tax Rates
Smaller cities and regional hubs often apply higher property tax rates to fund municipal services. Places such as Winnipeg, Windsor, Saint John, and London rely more heavily on property taxation due to narrower tax bases and fewer alternative revenue streams. Although the rates in these cities are higher, lower average home prices help limit the overall monthly property tax burden. This dynamic explains why a city with one of the highest tax rates does not necessarily produce the highest property tax bill in practice.
How Property Taxes Affect Homeownership and Mortgages
Property taxes are included in housing affordability calculations, assessed in the gross debt service (GDS) ratio, which also includes monthly stress-tested mortgage payments, heating, and applicable maintenance fees. Mortgage qualification in Canada is always based on gross income, not after-tax income. However, property taxes directly affect monthly cash flow and should be treated as a long-term, inflation-adjusted cost of homeownership.
For every increase in monthly carrying costs, borrowing flexibility tightens. Even modest differences in property taxes can meaningfully affect mortgage affordability when combined with mortgage payments. Property tax assessments can lag market pricing by years. Using current property tax rates and market home prices for your subject property is a conservative way to ensure you’re assessing your homeownership costs accurately.
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Frequently Asked Questions (FAQ) About 2026 Property Taxes in Canada
How do property taxes affect mortgage qualification in Canada?
Property taxes are included in gross debt service (GDS) ratio calculations when lenders assess mortgage affordability. Mortgage qualification is based on gross income under stress-testing rules. Higher property taxes can reduce a borrower’s mortgage qualifying amount, even if the purchase price remains the same.
Why do some cities have high property tax rates but lower tax bills?
Property tax rates reflect how municipalities fund services relative to their population and density. Cities with lower home prices often require higher tax rates to generate sufficient revenue, while high-priced markets can apply lower rates and still meet their municipal budget. The tax bill depends on both the property tax rate and the assessed value of the subject property.
Are property taxes the same across a province?
Property taxes vary by municipality, not by province. Each city or town sets its own tax rate based on local budgets, service requirements, and assessment values. Two homes with the same value in different cities within the same province can have meaningfully different property tax bills. However, provinces typically handle services and collect municipal property taxes for rural areas within their jurisdiction.
Do property tax assessments match market home prices?
Provincial property assessment authorities conduct property tax assessments and often lag current market prices. In rapidly changing markets, assessed values may differ from recent sale prices. Using current market prices alongside published tax rates provides a more conservative estimate of long-term homeownership costs.
Can property taxes increase over time?
Property taxes can change annually due to municipal budgets, reassessments, and service demand. Even if tax rates remain stable, rising assessed values can increase the total amount owed. Homeowners and prospective homebuyers should treat property taxes as a recurring, inflation-sensitive expense rather than a fixed cost in their long-term homeownership budget.
Final Thoughts
Property taxes are a persistent component of housing costs that influence affordability well beyond the point of purchase. They affect monthly cash flow, factor into mortgage qualification, and continue for as long as the property is owned. Comparing property tax rates in isolation can be misleading, just as focusing only on the purchase price can obscure the actual long-term cost of homeownership.
Sound mortgage decisions should take into account your unique financial circumstances and long-term goals. This assessment includes the purchase price, stress-tested mortgage payments, and ongoing expenses such as property taxes, which tend to rise over time. Greater clarity at this stage enables more effective planning, reduces the risk of affordability pressure later, and supports more sustainable homeownership outcomes.
Consult with a nesto mortgage expert to help align property taxes, mortgage term selection, and borrowing capacity into a mortgage strategy that reflects real carrying costs, not just the lowest mortgage rate.
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