New Study Shows Which Ontario Cities Pay The Highest Property Tax And It's Not Who You Think
Toronto has the lowest property tax in Ontario.
While many people view the mortgage of their house as one of the most expensive fees that they will ever have to pay, people often forget that property taxes can make that financial burden even higher than you originally expected. A new study has just been released that shows which cities have the highest property taxes in Ontario. Just like housing prices, the price of property taxes varies from city to city, and crazily enough, Toronto isn't even close to being one of the highest-ranked cities.
The study, released by Zoocasa, ranks some of the highest and lowest property taxes in cities throughout Ontario. Taking thirty-five cities from across Ontario, they ranked them from highest to lowest when it came to how much residents paid for their property taxes each year.
According to this study, it was recorded that Windsor is actually the city that pays the highest in property taxes throughout Ontario, with the highest rate at 1.78 percent. This means, that if a homeowner's house was worth $500,000 residents in Windsor would be paying $5,873 in property taxes each year.
Thunder Bay, Sault St. Marie, and North Bay also ranked as some of the highest cities when it comes to how much residents are paying in property taxes.
Yet, when it comes to property taxes in Toronto, it's a whole different story. Toronto was actually ranked as the lowest property taxpayer throughout Ontario at 0.61 percent rate. This means, that if you have a $500,000 home in the big city, you will only be paying $3,074 in property taxes a year.
Markham, Milton, Richmond Hill, and Vaughan were also ranked as some of the lowest property taxes in Ontario.
According to Zoocasa, property taxes vary from city to city as each municipality generates its own tax rates. This means, that cities with higher housing prices are often able to keep their property taxes lower, as housing prices generate more revenue for the city.
However, property taxes are only a small percentage of what homeowners pay per year. While Toronto may have some of the lowest property taxes throughout Ontario, their housing prices are some of the highest.
While Torontonians may be paying less on property tax than the rest of Ontario for a $500,000 home, finding a home at that low of a price in the city can be nearly impossible. More realistically, Toronto homeowners can be seen paying $6,148 in property taxes per year for their $1,000,000 home.
To view the full rankings of property taxes in Ontario, and find out which cities you should move to and keep those property taxes down, you can see Zoocasa's list here.