Property Taxes, What You Need To Know

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Property taxes

More taxes? Yup, that’s right on top of your mortgage payment and maintenance fees (if applicable) there are wonderful property or realty taxes.

As a first time home buyer taxes might go over your head with all the details you have to consider. So here’s a little property tax crash course:

What is property tax?

Cue Wiki: A property tax  is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a county or geographical region, or a municipality.

taxes

What’s paid for through your property taxes?

Every jurisdiction can include various levies for specific uses. For example the city of Toronto 2014, taxes are divided into 3 categories. 

  • Education 
  • City 
  • Transit expansion

Of the 3 categories ‘city’ is by far the largest covering things like garbage, snow removal, water supply, waste treatment, road maintenance, planning, growth management, social & children’s services, policing, fire protection, parks & recreation etc…

All things that contribute to the great quality of life we  enjoy.

How are your taxes calculated?

Each year your elected officials will approve levies to be charged to property owners for the coming year. So go out and vote for your city councilors!

The amount you pay depends on the value and type of property you own i.e. residential, multi-unit residential, commercial etc.

For current property tax rates in the city of Toronto click here.

Paying your property taxes

A wise man once said that in life there are only two things that are certain; death and taxes. How you pay those taxes can vary though.

The city gives you a couple of options to pay including lump-sum payments and regular payments through pre-authorized debit plans (i.e monthly, semi-annualy etc)

If you have a mortgage you might also be given an option to pay your property taxes with your regular mortgage payments. Not sure whether this is a good option for you?

Visit my blog post:

If you have any questions or concerns about your property taxes you can always reach out to your local municipality or tax office.

albert

 

 If you still can’t quite wrap your head around property tax don’t feel bad Albert Einstein once mused that “The hardest thing to understand in the world is tax.” Good luck.

 

 

 

 

chris
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chris

Christopher is a second-generation mortgage broker. Following in his dad’s steps, he helps borrowers demystify mortgage financing. Christopher lives in Toronto and when he is not in the office you’ll find him sailing on Lake Ontario.
chris
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