Property Tax

If you are a property owner in Canada then you need to pay a special tax to your municipality called “Property Tax”. The city council decides on property tax rates every year and then municipality collects it. Rates differ from one city to another. Some of the parameters that could affect property tax rates are as follows:

  • Value of the property
  • Property location
  • Taxes imposed by the province (such as educational tax by Ontario)

For example at the time of writing this post if you live in Toronto and your home is worth $200,000 then you need to pay about $1500.00 in property tax. If you live in Chatham, Ontario then your property tax would be about $3000.00. Note that $200,000 can hardly buy you a two bedroom apartment in Toronto while you may purchase a three or even four bedroom detached house with this amount in Chatham.

Click here to access a property tax calculator for Greater Toronto Area. The calculator shows the taxes for 2007 and 2008. It does not calculate the educational tax which is added to Ontario property taxes.

How Property Tax is Collected

Municipalities usually collect part of the property tax in the first six months of the year on account. They then calculate the final property tax for the year and collect the rest in the second half of the year. Chatham-Kent municipality collects property taxes in four installments by default. You may also request for monthly installments.

What Could Happen If I Do Not Pay my Property Tax?

If you do not pay your property tax you may lose your property. Municipality could evict you from your property and put it on sale to collect the debt.

Many Canadian banks offer a service in which they collect property tax from the property owner on a monthly basis. The amount collected remains in a special account and then will be transfered to municipality on due dates. This approach could help in reducing the risk of not paying the property tax.

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“This article provides information of a general nature only. It may no longer be current. It does not provide legal advice nor should it be relied upon. If you have specific legal questions you should consult a lawyer.”

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Al Parsai

Al Parsai is a Regulated Canadian Immigration Consultant (class L3 RCIC-IRB – Unrestricted Practice) in Toronto, Canada. He is an adjunct professor at Queen's University Law School and Ashton College. Al, who holds a Master of Laws (LLM) degree from York University, is a member of CICC and CAPIC organizations. Al, the CEO of Parsai Immigration Services, has represented thousands of applicants from more than 50 countries to the immigration authorities since January 2011.

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