When it comes to buying real estate, people often emphasize the importance of the place, the location of the property and what you spend on property taxes each year is a part of that.
Why are the properties so cheap?
Well, the price of the properties in Ontario has dropped recently in the face of the pandemic. A recent report has made it easier for aspiring homeowners to flesh out their choices when buying properties by publishing a list of Ontario cities that have the state’s highest and lowest fixed property taxes.
What do official reports say?
In July, Lowestrates.ca reported that the cities that have smaller populations and properties valued at low prices tend to have a higher tax rate to make up for the lack of taxpayers. In contrast, in densely populated cities and more expensive properties, tax rates are lower because tax payments will be more flexible.
So what is it that determines the tax on these residential properties?
Three factors determine your property tax rate: the assessed value of one’s home (it is different from the market value), the education tax rate determined by the province and the residential tax rate which is unique to each city. As the report states here are the five least expensive cities in Ontario for the 2021 property tax bracket :- 1. Vaughan, 0.67 % 2. Burlington, 0.78 % 3. Kitchener, 1.11 % 4. Clarence-Rockland, 1.26 % 5. Thorold, 1. 42 % However, the most expensive city in 2021 is Bellville in eastern Ontario which has a residential property tax rate of 1.67%. North Bay, Thomas, Sarnia, then Peterborough followed.
Here’s a list of the least expensive cities in Ontario for the 2021 property tax bracket :
Vaughan, 0.67 %
If you entered your home's Provincial Assessment price, the Vaughan government calculate your own home tax by multiplying your Assessment price through Vaughan's final assets tax rate.
Burlington, 0.78 %
Burlington metropolis council accepted the 2021 Tax levy bylaw on May 5. The overall assets tax growth is 2.5 % or $19.02 for each $100,000 of city residential assessment.
Kitchener, 1.11 %
Kitchener assets tax is primarily based totally on the assessed fee of your home. Every 4 years, the Municipal Assessment Corporation (MPAC) conducts an assessment of residences throughout Ontario and submits assessed values for every one of them. This assessed fee can vary considerably from the marketplace fee of your assets. Your very last assets tax quantity is calculated through multiplying the Kitchener very last assets tax charge for the 12 months through the MCAP assets assessed fee.
Clarence-Rockland, 1.26 %
The new budget plan saw on the end of October 2020, a 3.03 per cent growth in property taxes for the municipal levy part of the city’s sales for the subsequent year.
Thorold, 1.42 %
Residential properties have a tax ratio of 1.000000 and the city tax rate is 0.606774% %.
So, which is the most expensive option?
The most expensive city in 2021 is Bellville in eastern Ontario which has a residential property tax rate of 1.67%. North Bay, St. Thomas, Sarnia, and then Peterborough closely follows.
A home in Clarence Rockland, valued at $ 500,000, would require about $ 6,487.56 in annual property tax based on city property tax and property tax rates. These are merely rough calculations and assumptions. The report, as it stands, is not 100% representative of the entire province since it has only compiled information from 32 of Ontario’s 51 cities, all of whom have updated their property tax rates for 2021. But this report also comes with its flaws as it fails to provide prospective property owners and homeowners a generalized idea of what residential property tax looks like across the province.
An aerial view of Toronto, Ontario (Dan Sedran/Shutterstock)