Learn about how property taxes are calculated, who prepares your bill and property assessment.
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What is property tax?
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.
How are property taxes calculated?
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.
Who is responsible for preparing my 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.
Who is responsible for property assessment?
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.
Information Bulletin: Education Property Tax Rates for Certain Business Properties
This information bulletin provides clarification related to the 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.
Under the Education Act, the Minister of Finance has the discretion to make regulations setting rates for taxes for school purposes.
The Minister has prescribed the applicable rates for business properties in Tables 1-8 of O. Reg. 400/98.
The rates in Tables 5-8 of the regulation apply to certain business properties in which payments in lieu of taxes are made (PILs properties), as listed in section 9.1 of the regulation. These include certain federal, provincial, hydro and utilities properties, as well as properties owned by another municipality. For the purposes of calculating payments in lieu of taxes for PILs properties, the rates set out in Tables 5-8 of the regulation reflect the tax rate for school purposes that would be applicable to PILs properties if these properties were taxable.
Questions regarding the education rates for PILs properties may be directed to the Ministry of Finance at firstname.lastname@example.org.