What is it?
Property tax is a tax that the owner of a home or land pays every year to the municipality (the city or town). Unlike land transfer tax, which you pay once when you buy, property tax continues for as long as you own the home.
The city uses the money for roads, fire services, garbage pickup, libraries and similar services, and part of it funds Ontario’s elementary and secondary schools. That is why every property tax has two parts: a municipal portion and an education portion.
How is it calculated?
The formula is simple. Property tax = assessed value × (municipal tax rate + education tax rate).
The assessed value (officially the current value assessment) is set by MPAC, Ontario’s property assessment corporation. The municipal rate is set each year by your city council to match its budget, and the education rate is set by Ontario’s Ministry of Finance. In two-tier areas such as York Region, the municipal rate is split again into a Region share and a local city share.
The most common misunderstanding: the assessed value is not today’s price. Ontario uses a valuation date fixed by law, and it is still January 1, 2016. The province-wide reassessment planned for 2020 was postponed, and 2026 property taxes are still based on January 1, 2016 values. So a home bought in 2026 for $1,200,000 can easily have an assessed value in the $700,000 range.
2026 rates: Toronto vs Richmond Hill (York Region)
These are the residential rates. Every municipality is different and rates change each year, so check your own city’s website for the current year.
| 2026 residential | City of Toronto | Richmond Hill (York Region) |
|---|---|---|
| Municipal portion | 0.605295% (City) + 0.009016% (City Building Fund) | 0.214692% (City) + 0.392412% (York Region) |
| Education portion | 0.153000% | 0.153000% |
| Total rate | 0.767311% | 0.760104% |
| On an assessed value of $800,000 (example) | about $6,138 | about $6,081 |
Sources: toronto.ca "Property Tax Rates & Fees" (2026) and richmondhill.ca "Tax Rates" (2026 Summary Schedule). The $800,000 figures are estimates for reference only; a real bill can include special charges on top.
How to read your bill
- The Property Assessment Notice comes from MPAC; the property tax bill comes from the city. They are different documents, and the assessment notice is not a bill.
- The bill shows your roll number (a unique number for your property), the assessed value, the property class (residential, for example), the municipal and education rates, and the instalment amounts and due dates. For online banking, the roll number works as your account number.
- Most cities send two bills a year. Toronto mails an interim bill in January and a final bill in May. Markham issues an interim bill in early January (50% of the previous year’s taxes) and a final bill in early June.
- The first bills for a newly built house or condo may not include the building yet. After MPAC assesses the building, the city sends a supplementary (or omitted) bill. Under section 33 of the Assessment Act, it can cover the current year and up to the two years before it at once, so if you bought new construction, set money aside for it.
When is it due? (Toronto, 2026)
| Payment plan | Interim bill | Final bill |
|---|---|---|
| Regular 3 + 3 instalments | March 2, April 1, May 1 | July 2, August 4, September 1 |
| Pre-authorized, 2 instalments | March 2 | July 2 |
| Pre-authorized, 11 instalments | February 17, March 16, April 15, May 15, June 15 | July 15, August 17, September 15, October 15, November 16, December 15 |
Source: toronto.ca "Property Tax Due Dates" (2026). Other cities use different dates; for example, Markham’s 2026 residential final bill is due July 6 and August 5. Some mortgages include a tax account where the lender pays the tax for you, so check your mortgage documents.
Buying or selling: the tax is adjusted on closing
Property tax attaches to the property, not the person. Unpaid tax passes to the new owner, so the buyer’s lawyer gets a tax certificate from the city before closing to confirm nothing is owing.
On closing day, the lawyer splits that year’s tax by date on the statement of adjustments. If the seller has prepaid for a period after closing, the buyer repays that share; if the seller has not paid yet, the seller’s share is credited to the buyer. See "Statement of adjustments" for the calculation.
After you buy, the city must be told about the ownership change so bills come in your name. Toronto charges a fee for this (in 2026, $51.61 for the tax account alone). Even if a bill never arrives, the owner is still responsible for paying.
If you think your tax is too high
You cannot change the tax rate; the city council sets it. What you can challenge is the assessed value. If you believe your assessment is too high for a January 1, 2016 value, you can file a free Request for Reconsideration with MPAC, and if you still disagree, appeal to the Assessment Review Board. The deadlines and order are in the "MPAC" entry.
A higher assessment does not always mean a higher tax. In a province-wide reassessment, what matters is whether your home’s value rose more than similar homes in your municipality.
Example
In March 2026 you buy a house in Richmond Hill for $1,150,000. The MPAC notice shows an assessed value of $780,000 (as of January 1, 2016). At Richmond Hill’s 2026 residential total rate of 0.760104%, the yearly tax is about $5,929 (an estimate for reference).
The seller already paid that year’s interim bill. If closing is March 20, your lawyer assigns January 1 to March 19 to the seller and March 20 onward to you on the statement of adjustments. When the final bill comes out later in the year, you pay it as the new owner.
What the law and official sources say
Quotes are copied word for word. The "In plain words" lines are our explanation, not an official translation.
Property taxes are calculated using the Current Value Assessment (assessed value) of a property, as determined by the Municipal Property Assessment Corporation (MPAC), and multiplying it by the combined municipal tax rate and education property tax rates for the applicable class of property.In plain wordsProperty tax is the MPAC assessed value multiplied by the municipal and education rates for your property class.
Source: ontario.ca/page/property-tax · checked Oct 30, 2026
Property assessments are based on the current value of properties as of a legislated valuation date, which is currently January 1, 2016. … An assessment notice is NOT a tax bill – municipalities send tax bills to property owners annuallyIn plain wordsAssessments reflect value on a legal valuation date, which is still January 1, 2016. The MPAC notice is not a bill; the city sends the tax bill every year.
Source: ontario.ca/page/property-tax · checked Oct 30, 2026
The assessment of land shall be based on its current value.In plain wordsProperty must be assessed at its "current value", meaning its value on the legal valuation date (currently January 1, 2016).
Source: ontario.ca/laws/statute/90a31 · checked Oct 30, 2026
The following rules apply if land liable to assessment has been in whole or in part omitted from the tax roll for the current year or for all or part of either or both of the last two preceding years, and no taxes have been levied for the assessment omitted: 1. The assessment corporation shall make any assessment necessary to correct the omission. 2. If the land is located in a municipality, the clerk of the municipality shall alter the tax roll upon receiving notice of the change, and the municipality shall levy and collect the taxes that would have been payable if the assessment had not been omitted.In plain wordsIf a property, or part of it such as a new building, was left off the tax roll, the assessment corporation (MPAC) assesses the missing period, which can be this year and up to the two years before, and the city collects the tax that should have been paid. In this Act, "land" includes buildings.
Source: ontario.ca/laws/statute/90a31 · checked Oct 30, 2026
Your property tax bill is calculated by multiplying the current year phased-in property assessment value, as determined by the Municipal Property Assessment Corporation (MPAC), by Council approved City Tax Rate(s) with the City Building Fund Levy and the Education Tax Rate, as set by the Government of Ontario.In plain wordsToronto’s bill is the MPAC assessed value times the City rate, the City Building Fund levy and the provincial education rate.
Source: toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-rates-and-fees/ · checked Oct 30, 2026
The current value assessment for properties is based on a valuation date of January 1, 2016. Reassessment continues to be postponed, pending the outcome of a provincial review of the taxation and assessment system.In plain wordsYork Region also uses January 1, 2016 values, and the province-wide reassessment stays postponed until Ontario finishes reviewing the system.
Source: york.ca/york-region/regional-property-taxes · checked Oct 30, 2026
The City of Toronto issues two property tax bills each year. Interim bills are mailed in January and final bills are mailed in May.In plain wordsToronto mails an interim bill in January and a final bill in May every year.
Source: toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-due-dates/ · checked Oct 30, 2026
Common questions
Prices went up. Why is my assessed value the same?
Because Ontario’s valuation date is still January 1, 2016. The province-wide reassessment planned for 2020 was postponed, so 2026 taxes are still based on 2016 values. Your purchase price does not change the assessed value by itself.
Is property tax cheaper in Toronto or York Region?
For 2026 the residential total rates are close: Toronto 0.767311% and Richmond Hill 0.760104%. The actual amount depends more on the assessed value than on the rate, and each municipality inside York Region has its own rate. Check your city’s website for the current year.
I never received a tax bill. Do I still have to pay?
Yes. The owner is responsible even if no bill arrives, and late payments attract penalties and interest. If no bill comes after you buy, ask the city’s tax office whether the ownership change was recorded.
My new condo’s tax seems far too low. Why?
New construction may be billed without the building’s value until MPAC assesses the building. When that happens, the city sends a supplementary (or omitted) bill that can cover the current year and up to the two previous years at once (Assessment Act, s. 33). Set money aside for it.
What does it mean that my mortgage includes property tax?
The lender adds a tax share to your mortgage payment, holds it, and pays the city for you. You should still check the bills and payments yourself, and Toronto adds a mortgage company administration fee ($13.68 per bill in 2026) to the tax account in this case.
What if I think my assessed value is too high?
Ask yourself whether you could have sold the home for that value on January 1, 2016. If not, file a free Request for Reconsideration with MPAC. For residential property you must do this before you can appeal to the Assessment Review Board. See the "MPAC" entry for deadlines.
Guides that use this term
Sources checked
- Ontario.ca, Property tax (updated July 29, 2026) · checked Oct 30, 2026
- Assessment Act, R.S.O. 1990, c. A.31 (e-Laws) · checked Oct 30, 2026
- City of Toronto, Property Tax Rates & Fees (modified May 11, 2026) · checked Oct 30, 2026
- City of Toronto, Property Tax Due Dates (modified June 30, 2026) · checked Oct 30, 2026
- City of Richmond Hill, Tax Rates (2026 Summary Schedule) · checked Oct 30, 2026
- City of Markham, About Your Tax Bill · checked Oct 30, 2026
- York Region, York Region Property Tax · checked Oct 30, 2026
- MPAC, How will my property assessment impact my property taxes? · checked Oct 30, 2026