Toronto recently revealed it is proposing a 10.5 per cent increase in property taxes this year, but what many residents don’t know is that this is one of the lowest property tax rates in the country.
Last week, the city’s proposed 2024 budget was released during a budget committee meeting. It included a 9.5 per cent increase to the residential tax and a 1.5 hike to the building levy, totalling to a 10.5 per cent annual increase for property owners.
This means an annual increase of $321 will be added to the bill for homeowners. This equates to a monthly increase of $26.75.
The city’s operating budget is $17 billion and the 2024-2033 capital budget and plan is $49.8 billion.
The new budget is aimed at combating inflation and protecting core services such as transit, shelters and community safety. Other major cities across the province have also followed suit.
The proposed tax hike was met with some backlash from residents online who think the double-digit increase is significant. However, according to recent data Toronto’s potentially new boost to property taxes is not that big of a growth compared to other major cities.
Last year, the Montreal Gazette reported that Montreal’s property taxes are expected to rise nearly five per cent this year, which would be the highest tax hike the city has seen in 13 years. Meanwhile in Vancouver, property taxes are set to increase by 7.4 per cent.
According to financial media company Forbes, these are the municipal tax rates in major cities across Canada as of 2023.
The research found that Vancouver has the lowest property tax rate in the country with 0.28 per cent, meanwhile Winnipeg has the highest at 2.64 per cent.
Based on the findings, Toronto currently has one of the lowest property tax rates sitting at 0.67 per cent, putting the city in fourth place among the list of 12 cities.
Elsewhere in the GTA, the city of Brampton will see a 1.9 per cent increase, while Mississauga will see a 2.34 per cent increase.
