Who should pay property tax and when?
If you own any type of real estate in Canada, you are required to pay property taxes annually, directly to the municipal government. Property taxes are one way that local 
governments generate revenue. They are collected by local governments from residential, commercial and industrial property owners.
Due date for payment is 2 July 2025
How are Property Taxes Calculated?
The calculation of property taxes involves two key factors:
- Property
- The tax rate set by the local municipality
Assessment of Property Value:
The assessment of property’s value is usually performed by a local or provincial assessment body. This assessment considers the property’s size, age, location and improvements or renovations. It’s important to note that the assessed value for tax purposes might differ from the property’s market value.
Municipal Tax Rates
Once the property’s value is assessed, the local municipality applies a tax rate to this value to determine the property tax. This rate is often expressed in mills (one million equals $1 in property tax levied per $1,000 of a property’s assessed value.) The rate varies depending on the municipality and the type of property.
In essence, the formula to calculate the property tax is Property Tax = Property Value Assessment x Municipal Tax Rate.
For Example: If a home is valued at $500,000 and the municipal tax rate is 0.5%, the homeowner would owe $2,500 in property taxes for the year.
