Newsletters may offer personalized content or advertisements. Nonetheless, while average home prices can differ dramatically by market, so too can homeownership costs. For example, the Toronto tax rate is 0.63551%, which translates into $5,532 of property taxes based on the average June 2018 home value of $870,559. By Daniel Tencer Daniel Tencer So to get a broader picture of who's paying the highest and lowest taxes, we looked at the estimated bill for a typical (average or benchmark) home in each city.Looked at this way, the numbers tell a different story. Don’t miss important real estate news, and buying & selling tips: Check out our property tax FAQs for home buyers here . Copyright © 2020 HuffPost.com, Inc. "HuffPost" is a registered trademark of HuffPost.com, Inc. All rights reserved. Canada’s Best Places to Live for Low Taxes: Top 100 Cities. Thanks to property taxes, the city you live in matters too. "Sherry Cooper, chief economist, Dominion Lending Centres Her commentary on the housing market is frequently featured on both national and local media outlets including BNN Bloomberg, CBC, The Toronto Star, National Post, and The Huffington Post. In comparison, the Edmonton tax rate is 0.86869% or about 1.4 times that of Toronto’s, but the average home value in Edmonton is substantially lower at $381,520, which would result in a lower amount of property taxes overall at $3,314. When not keeping an eye on Toronto's hot housing market, she can be found brunching in one of the city's many vibrant neighbourhoods, travelling abroad, or in the dance studio.
In fact, the best cities with the lowest property tax rates were generally found in BC, with Victoria at 0.52035% and Kelowna at 0.52605%.However, living in a region with a low tax rate doesn’t necessarily translate to less tax paid if average home prices are higher. Do you have questions about how property taxes work? Taxes pay for everything from the roads we drive on to our universal health care. Zoocasa.com is a full-service brokerage that offers advanced online search tools to empower Canadians with the data and expertise they need to make more successful real estate decisions. For example, the Zoocasa compared the property tax rates of 25 major cities across Canada to understand how taxes range between municipalities.While each province and municipality have their own tax formula nuances, an individual’s property tax is generally based on the following:The typical property tax formula for an individual multiplies the municipality’s residential rate by the assessed value of the home as determined by the province. In comparison, the Edmonton tax rate is 0.86869% or about 1.4 times that of Toronto’s, but the average home value in Edmonton is substantially lower at $381,520, which would result in a lower amount of property taxes overall at $3,314.Within major cities in Alberta, property tax rates varied widely: Calgary has a rate of 0.63573% while Lethbridge’s rate is 1.11067% or about 1.7 times that of Calgary’s.There is also a large range in property rates for Ontario cities: London’s rate of 1.35082% is more than double Toronto’s rate while Ottawa’s rate of 1.06841% is 1.6 times that of Toronto’s.Check out the infographic below to see how property taxes rates differ in major municipalities across Canada and how much in property taxes those rates result in, based on sample home value assessments.All property tax rates were sourced from municipal websites. Join 110,000+ weekly subscribers. Typically, when prices spike, city council reduces the tax rate to lessen the shock to homeowners. Someone who owns a million-dollar property would pay $2,468 in property taxes in Vancouver, Zoocasa estimated, compared to $6,355 in Toronto and $10,684 in Ottawa. When it comes to Canada’s housing markets, property values and the economic fundamentals that support them vary widely from coast to coast — as do property taxes.. This was a campaign promise from sitting Mayor John Tory, and the city also has more wiggle room to keep taxes low as it also receives proceeds from its municipal land transfer tax; it is the only city in North America where home buyers pay LTT at both the municipal and provincial level.Because property taxes differ between major municipalities, those looking to buy real estate in various cities or towns need to be aware of how the local tax rate, and the appreciation of home values over time, will impact their overall housing affordability.Out of the 25 major Canadian cities studied, Vancouver ranks the best for property taxes with the lowest rate of 0.24683%; that’s less than half the rate of the next highest city, Abbotsford, BC which has a rate 0.51300%. The city has introduced a school-tax surcharge on properties above $3 million, much to the chagrin of high-end homeowners. By Claire Brownell on July 31, 2018.