Take the default $700,000 home assessed in Toronto, where the approximate mill rate is 0.66 percent. Property tax is just the assessed value multiplied by that rate, so $700,000 times 0.0066 gives $4,620 a year, or about $385 a month once it is rolled into your mortgage payment. The mill rate is the whole story, and it varies enormously across the country. The very same $700,000 assessment in Vancouver, at roughly 0.27 percent, would cost only $1,890 a year, while in Winnipeg at about 1.13 percent it would cost $7,910. Vancouver looks cheap on rate alone, but its home values are far higher, so the absolute dollar bill on a typical house ends up closer to other cities than the rate suggests. That trade-off between low rates and high values is why comparing cities on the percentage alone can mislead.
How it is calculated
Canadian municipal property tax is assessed value multiplied by the local mill rate, and the tool does exactly that, then divides by twelve to show the monthly portion that most owners pay through their mortgage escrow. The assessed value is set by the provincial assessment authority, such as MPAC in Ontario or BC Assessment, and is not always the same as your market price or recent sale price. The mill rate is set each year by the municipality to fund its budget, so it drifts up or down over time and differs sharply between cities. The rates in the dropdown are recent approximations for major cities and should be confirmed against your latest tax bill for an exact figure. There are no provincial brackets here: a single flat percentage applies to the entire assessed value, which is what makes the city-to-city comparison so stark.
Frequently asked questions
Why does Vancouver pay less than Toronto?
Vancouver's mill rate is lower but home values are higher; absolute dollar tax can be similar. Calgary, Edmonton mill rates are higher (~0.7-1.0%), but Alberta has no land transfer tax or PST.
Is property tax in Canada deductible on my income tax?
For a principal residence, property tax is not deductible on your personal federal income tax return. However, if you use part of your home for business or rent a portion of it, that share of property tax may be deductible as a business or rental expense under CRA rules.
How is assessed value different from market value?
Assessed value is determined by a provincial assessment authority, such as MPAC in Ontario or BC Assessment, and may lag behind current market prices. Municipalities apply the mill rate to the assessed value, not the sale price, so your tax bill does not automatically spike when home prices rise in your neighbourhood.
Can I appeal my property tax assessment?
Yes. Each province has a formal appeal process through its assessment authority. You typically have 90 days from receiving your assessment notice to file a request for review. Successful appeals can reduce your assessed value and lower future tax bills.