Canada Property Tax Guide
the property taxes in Canada. The municipal property tax is the annual tax on the real estate (the "property tax" or the "mill rate tax") — the tax rate is set by the municipality and is based on the assessed value of the property. The land transfer tax (LTT) is the one-time tax paid by the buyer when the property is purchased. The Ontario land transfer tax is calculated on the sliding scale: 0.5% on the first $55,000, 1% on $55,000-$250,000, 1.5% on $250,000-$400,000, 2% on $400,000-$2 million, 2.5% on the amount above $2 million. The Toronto Municipal Land Transfer Tax (MLTT) imposes the additional tax (the same rates as the Ontario LTT) for the properties in the City of Toronto. The BC Property Transfer Tax (PTT) is 1% on the first $200,000, 2% on $200,000-$2 million, 5% on $2 million-$3 million, and 10% on the amount above $3 million. The Quebec transfer tax (the "taxe de mutation") is up to 3% total (the rates vary by the municipality). The first-time home buyer rebates for the land transfer tax are available in Ontario (up to $4,000) and BC (up to $8,000). The property assessment is performed by the MPAC (Ontario) and the BC Assessment (BC) — the assessment determines the \u201Ccurrent value assessment\u201D (the CVA) that is used for the municipal tax calculation. The property tax deferral programs are available for the seniors (the BC and the Ontario programs). The vacant home tax — the Underused Housing Tax (UHT) at 1% of the property value, the BC Speculation and Vacancy Tax (SVX) at 0.5% to 2%, and the Toronto Vacant Home Tax (VHT) at 1% of the CVA.
Municipal Property Tax
- Assessment: The municipal property tax is calculated as the "mill rate" multiplied by the "assessed value" of the property. The assessment is performed by the provincial assessment authority (the MPAC in Ontario, the BC Assessment in BC, the SQI in Quebec). The assessment reflects the "current value" (the market value as of the valuation date).
- Mill rate: The tax rate is expressed in the "mills" (1 mill = $1 per $1,000 of the assessed value). The typical mill rate is 0.5% to 1.5% of the assessed value (varies by the municipality). The property tax for the $500,000 home at the 1% mill rate is $5,000 per year.
- School tax: The "education tax" (the "school board tax") is the provincial component of the property tax. The school tax rate is set by the province (the "education property tax" — the "EPTR" in Ontario).
- Assessment appeal: The property owner can appeal the assessment within the appeal period (typically 60 to 90 days from the assessment notice). The appeal is made to the "Assessment Review Board" (the ARB in Ontario, the PRB in BC).
Land Transfer Tax (Property Transfer Tax)
- Ontario LTT: 0.5% on the first $55,000 ($275), 1% on $55,001-$250,000 ($1,950), 1.5% on $250,001-$400,000 ($2,250), 2% on $400,001-$2 million (up to $32,000), and 2.5% on the amount above $2 million. The total LTT on the $1 million home is $16,475.
- Toronto MLTT: The additional municipal land transfer tax (the "dual LTT" in the City of Toronto) — the same rates as the Ontario LTT. The total LTT on the $1 million home in Toronto is $32,950 (Ontario LTT + Toronto MLTT).
- BC PTT: 1% on the first $200,000 ($2,000), 2% on $200,001-$2 million (up to $36,000), 5% on $2,000,001-$3 million (up to $50,000), and 10% on the amount above $3 million. The total PTT on the $1 million home is $18,000.
- Quebec transfer tax (taxe de mutation): 0.5% on the first $58,600 (2025, the threshold indexed annually), 1% on $58,601-$293,000, 1.5% on $293,001-$586,000, and 2% on the amount above $586,000. The total tax on the $500,000 home is approximately $5,800.
- First-time home buyer rebates: Ontario offers the rebate of up to $4,000 (the "Ontario Land Transfer Tax Refund" for the first-time home buyers). BC offers the "First Time Home Buyers' Program" — the exemption from the PTT on the first $500,000 (for the properties up to $835,000).
Property Tax Deferral Programs
- BC Property Tax Deferral: The low-interest loan program for the seniors (55+) and the families with the children. The participant can defer the property taxes (the "regular property tax deferral" at the simple interest rate, currently 2% to 5%).
- Ontario Property Tax Deferral: The "Ontario Senior Homeowners' Property Tax Grant" (the "OSHPTG") — up to $500 per year for the low-income seniors (the income below $57,000). The "Ontario Property Tax Deferral" for the seniors is NOT available (the Ontario does not have the property tax deferral program).
- Alberta Senior Property Tax Deferral: The "Senior Property Tax Deferral Program" — the low-interest loan for the seniors aged 65+. The loan is secured by the home and is repaid when the home is sold.
For the principal residence exemption and the capital gains on the home sale, see our Principal Residence Exemption Guide →. For the Underused Housing Tax (UHT) and the vacant home taxes, see our Vacant Home Tax Guide →.