Learn about how property taxes are calculated and who prepares your bill and property assessment.
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Property tax is a levy based on the assessed value of property.
Property tax has two components: a municipal portion and an education portion.
- The rates for the municipal portion of the tax are established by each municipality.
- In a two-tiered municipality, a component of the rate is set by the upper-tier and a component is set by the lower-tier municipality.
- The rates for the education portion of the tax are established by the Minister of Finance and help to fund the elementary and secondary education system in Ontario. Education tax rates are set in Ontario Regulation 400/98 under the Education Act, and are available at https://www.ontario.ca/laws/regulation/980400.
- Information on education property tax rates for certain business properties for which payments in lieu are made can be found here.
Calculating property taxes
Property taxes are calculated using the Current Value Assessment of a property, as determined by the Municipal Property Assessment Corporation (MPAC), and multiplying it by the combined municipal and education tax rates for the applicable class of property.
Property tax bill
Your local municipality is responsible for the preparation of your tax bill. For information on your property, including the property tax bill, please contact the finance/treasury department of your local municipality.
If your property is located in an unincorporated territory of Ontario, property tax is collected through the Provincial Land Tax program by the Provincial Land Tax Office in Thunder Bay.
Properties are assessed for property tax purposes by the Municipal Property Assessment Corporation (MPAC).
Property assessments are based on the current value of properties as of a legislated valuation date, which is currently January 1, 2016.
If certain types of changes occur on a property during a tax year, such as new construction or an ownership change, MPAC mails an updated assessment notice following the change.
An assessment notice is NOT a tax bill – municipalities send tax bills to property owners annually
Information about the assessment process is available on MPAC's website at this link.
For people who disagree with the accuracy of their property’s assessed value, information about the assessment appeal process is available on MPAC’s website at this link.
Clarification about education property tax rates for certain business properties
The following information clarifies education tax rates for business properties, as defined in section 257.5 of the Education Act, including business properties in which certain payments in lieu of taxes are made.
According to the Education Act, the Minister of Finance has the discretion to establish tax rates for school purposes through regulations.
Tables 1-8 of O. Reg. 400/98: Tax Matters – Rates for School Purposes, as prescribed by the Minister, outline the applicable rates for business properties.
Tables 5-8 of the regulation specifically pertain to certain business properties with payments in lieu of taxes (PILs properties), detailed in section 9.1. These properties include certain federal, provincial, hydro and utilities properties, as well as properties owned by another municipality. For calculating payments in lieu of taxes, the rates in Tables 5-8 reflect the tax rate for school purposes applicable to PILs properties if they were taxable.
Questions regarding the education rates for PILs properties may be directed to the Ministry of Finance at firstname.lastname@example.org.