Property taxes in Toronto are calculated by multiplying your property's assessed value, as determined by the Municipal Property Assessment Corporation (MPAC), by the combined municipal and education tax rates set by the City of Toronto and the Province of Ontario. The result is your annual property tax bill, which funds city services and the public school system.
Property taxes are calculated using the assessed value of your property and multiplying it by the combined municipal and education tax rates for your property class. Your property tax bill is calculated by multiplying the current year phased-in property assessment value, as determined by MPAC, by Council-approved City Tax Rates with the City Building Fund Levy and the Education Tax Rate, as set by the Government of Ontario.
MPAC is responsible for determining assessed values across Ontario. To establish a property's assessed value, MPAC analyzes sales of comparable properties in the area using a method called Current Value Assessment (CVA). Five critical factors are taken into consideration: building age, square footage, property location, lot size, and construction quality. However, a crucial detail often surprises buyers and owners: property assessments for the 2026 property tax year will continue to be based on January 1, 2016 assessed values. The last province-wide Assessment Update took place in 2016, and in 2020, the province-wide assessment update was postponed due to the COVID-19 pandemic. This means your assessed value is likely much lower than your property's current market value.
The tax rate itself has three components. There is the base municipal tax rate, which funds city operations such as police, fire, transit, and parks. On top of that sits the City Building Fund levy, a dedicated charge that supports infrastructure investment. The third component is the education tax rate, set by the Province of Ontario and collected by the city on behalf of the province. The 2026 budget includes a combined residential property tax increase and City Building Fund levy increase of 2.2 per cent. In total, that represents an increase of $91.53 per year, or $7.63 per month, based on MPAC's average current value assessment of a Toronto home at $692,140.
Toronto traditionally has one of the lowest property tax rates in Ontario. While the rate is lower than many surrounding cities, the higher property values mean total taxes can still be significant. For a condo assessed at $400,000 under the 2016 valuation, annual property taxes in 2026 would be roughly $3,000 to $3,200.
Toronto issues two property tax bills annually, an interim and a final bill. Property taxes are split into interim and final billing schedules, with six due dates in March, April, May, July, August, and September. Owners can also enroll in pre-authorized payment plans to spread costs more evenly across the year. If you believe your MPAC assessment is inaccurate, you can file a Request for Reconsideration for MPAC's review, free of charge. For a broader look at all the expenses involved in purchasing a condo, see How Much Does It Really Cost to Buy a Condo in Toronto?