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How Ontario Property Tax Works in 2026
Your property tax is your home's assessed value times your city's rate — but why neighbours pay different amounts, why Toronto pays less than Windsor, and how to lower your bill all come down to how those two numbers are set.
Updated July 2026 · 9 min read · Source: MPAC, Ontario municipalities
The Formula: Assessed Value × Tax Rate
Every Ontario property tax bill comes from two numbers multiplied together: the assessed value set by MPAC (the Municipal Property Assessment Corporation), and the total tax rate set by your municipality plus the province's education rate.
The education portion is set by the Province of Ontario and is the same across the province for residential property; the municipal portion is set by your city or town each year in its budget.
Why the Rate Varies So Much Between Cities
A city's residential tax rate is, roughly, its budget divided by the total assessed value of every property in it. Cities with very high property values can raise the same money with a much lower rate. That's why Toronto and the wealthy 905 suburbs have some of the lowest rates in Ontario, while cities with lower home values need higher rates to fund services.
Approximate 2026 Residential Tax Rates
Total residential rate (municipal + education). Each municipality sets its own rate annually, so treat these as approximate — confirm the current year's rate with your city.
| City | Approx. Rate | Tax on $700K |
|---|---|---|
| Toronto | 0.71% | $4,970 |
| Markham | 0.66% | $4,620 |
| Mississauga | 0.79% | $5,530 |
| Brampton | 1.02% | $7,140 |
| Ottawa | 1.14% | $7,980 |
| Kitchener | 1.21% | $8,470 |
| Hamilton | 1.35% | $9,450 |
| London | 1.45% | $10,150 |
| Windsor | 1.85% | $12,950 |
Rates are approximate for 2026 and change yearly with each municipal budget. Use the calculator below for a current estimate for your city and assessed value.
How MPAC Assessment Works (and the 2016 Freeze)
MPAC assesses the value of every property in Ontario using sales of comparable homes, lot size, living area, age, location, and quality. Normally this is updated on a four-year cycle — but the province has repeatedly postponed the province-wide reassessment.
Because everyone in a municipality is frozen at the same 2016 base, a rising market doesn't automatically raise your taxes — your bill mainly moves when your city changes its rate, or when a reassessment eventually resets values. When reassessment does happen, any increase in your assessed value is phased in gradually over four years.
How to Appeal Your Assessment
You can't argue the tax rate, but you can challenge your assessed value if you believe MPAC has it too high compared with similar homes. A lower assessment means a lower tax bill.
Rebates and Relief Programs
Frequently Asked Questions
Assessed value (from MPAC) × your municipality's total rate (municipal + provincial education). A $700,000 assessment at 0.71% is about $4,970 per year.
High property values let Toronto fund its budget with a low rate. Cities with lower home values need higher rates to raise the same revenue.
A January 1, 2016 valuation. Ontario has postponed the province-wide reassessment, so most homes are still taxed on 2016 values.
File a free Request for Reconsideration with MPAC if your assessed value looks too high versus comparable homes, then appeal to the Assessment Review Board if needed.
Yes — municipal deferral/relief programs for low-income seniors and people with disabilities, plus provincial credits like the Trillium Benefit and Senior Homeowners' Property Tax Grant.