The average property tax in Ontario falls somewhere between roughly 1.1% and 1.3% of a property’s assessed value, but that midpoint hides a wide spread. Actual rates range from about 0.6% in parts of the Greater Toronto Area to well above 1.5% in many smaller and northern municipalities. Toronto’s 2026 total residential rate is about 0.77%, while cities with lower property values charge significantly higher percentages to fund comparable services. There is no single official provincial average published by the government, so what matters for your bill is the rate set by your specific municipality applied to the assessed value on your MPAC notice.
How the Bill Is Calculated
Your property tax bill equals your assessed value multiplied by the combined tax rate. The Municipal Property Assessment Corporation (MPAC) sets the assessed value by estimating what your property would sell for on the open market, and it sends every owner a notice showing that value, the property’s classification, and the valuation date.1Municipal Property Assessment Corporation. Reading Your Property Assessment Notice MPAC is an independent corporation established under its own provincial statute, and every Ontario municipality is a member.2Government of Ontario. Ontario Code – Municipal Property Assessment Corporation Act 1997
A worked example: Toronto’s 2026 total residential rate is 0.767311%, so a home assessed at $650,000 would owe roughly $4,987 for the year.3City of Toronto. Property Tax Rates and Fees
Why “Assessed Value” Is Not Today’s Market Value
Ontario’s property assessments for the 2026 tax year are still based on fully phased-in January 1, 2016 current values.4Municipal Property Assessment Corporation. Notices and Notifications The province postponed the reassessment originally scheduled for 2020 and has extended that freeze through several cycles since. No firm date for the next reassessment has been announced.
The practical effect: if your neighbourhood has appreciated sharply since 2016, your assessed value understates what your home is worth today, and your tax bill is likely lower than it would be after a reassessment. If values in your area have stagnated or fallen, you may be paying more than current conditions justify. Every tax bill in the province is anchored to that 2016 snapshot.
What Makes Up the Rate
Two components appear on every bill, and a third shows up in some municipalities.
Municipal Portion
The largest share goes to your local municipality. Councils set this rate each year through their budget process, and it funds road maintenance, waste collection, police, fire, parks, and the rest of local government. Because each municipality has its own spending priorities and its own tax base, this rate varies enormously across the province. A city with high property values can raise the revenue it needs at a lower percentage than a city where homes are assessed much lower.
Education Portion
The province sets the education tax rate and it is uniform across Ontario for each property class. For 2026, the residential education rate is 0.153% of assessed value. Farm and managed forest properties pay a lower rate of 0.03825%.5Ontario.ca. Ontario Regulation 400/98 – Tax Matters – Rates for School Purposes This is one of the few parts of your bill that does not change based on where in Ontario you live.
Special Levies
Some municipalities add charges for specific services. Transit levies are a common example, appearing as a separate line item where a municipality has designated public transit as a special service. City-building levies for infrastructure and debt charges for major capital projects can also appear. Not every municipality uses these.
Rates by City
The gap between Ontario’s lowest and highest property tax rates is dramatic, and it trips up homebuyers who compare sticker prices between cities without checking the tax bill.
Toronto consistently has one of the lowest rates in the province. Its 2026 total residential rate is approximately 0.77%.3City of Toronto. Property Tax Rates and Fees High property values across the GTA generate enough revenue for the city to keep its percentage low. Other 905-region municipalities like Mississauga and Markham operate on similar logic, though their rates tend to land slightly higher than Toronto’s.
Mid-sized cities like Ottawa and Hamilton typically fall in the range of 1.0% to 1.3%. Ottawa’s rate has been climbing with recent budget increases, and Hamilton’s council approved a property tax increase of 3.87% for 2026. These cities have a solid commercial tax base but do not benefit from the extreme property values found in downtown Toronto.
Smaller cities and northern municipalities often charge rates above 1.5%. Places like Thunder Bay, Windsor, and Sault Ste. Marie rely on higher percentage rates to compensate for lower assessed property values. A home assessed at $250,000 in one of these cities can easily owe more in annual property tax than a home assessed at $400,000 in the GTA. That math surprises people, but it reflects the reality that municipal services cost roughly the same to deliver regardless of local real estate prices.
Estimates from financial data aggregators put the provincial average somewhere around 1.1% to 1.3%, but that figure obscures more than it reveals. The rate you actually pay is the one set by your municipality, which you can find on your city’s website or your most recent tax bill.
Programs That Reduce What You Pay
Several Ontario programs cut the effective property tax burden for qualifying residents. Each requires an annual application.
Ontario Energy and Property Tax Credit
The Ontario Energy and Property Tax Credit (OEPTC) is part of the Ontario Trillium Benefit and is available to renters and homeowners. For the 2026 benefit year, the property tax component is worth up to $581 and the energy component adds up to $290. The benefit begins to phase out when adjusted family net income exceeds $43,571.6Canada Revenue Agency. 2026 Ontario Energy and Property Tax Credit Calculation Sheets You apply by completing Form ON-BEN with your income tax return.7Canada Revenue Agency. Province of Ontario
Senior Homeowners’ Property Tax Grant
Homeowners aged 64 or older as of December 31 of the prior tax year can apply for an annual grant of up to $500.8Government of Ontario. Senior Homeowners Property Tax Grant You or your spouse must own and occupy a principal residence in Ontario and must have paid property tax on it during the prior year.9Canada Revenue Agency. Ontario Senior Homeowners Property Tax Grant Questions and Answers Application is through Form ON-BEN each year.
Farm Property Class Rate
Land assessed as farmland by MPAC and used for a registered farm business qualifies for a reduced rate capped at 25% of the residential rate. Buildings used for residential purposes on the same property are still taxed at the full residential rate.10Government of Ontario. Farm Property Class Tax Rate Program The property must be owned by Canadian citizens or permanent residents, and the farm business must hold a valid Farm Business Registration number.
If You Think Your Assessment Is Too High
Because your bill is rate times assessed value, challenging the assessment is the other way to lower what you owe. Start with a Request for Reconsideration (RFR) filed directly with MPAC. For residential, farm, managed forest, and conservation land, the deadline is 90 days after the mailing date on your assessment notice.11Tribunals Ontario. ARB Info Sheet – Request for Reconsideration MPAC reviews your property details and compares them to similar properties.
If the RFR result does not satisfy you, an appeal to the Assessment Review Board can be filed within 90 days of the MPAC decision. The filing fee for residential properties is $132.50 per roll number.12Tribunals Ontario. Filing an Appeal Because assessments remain frozen at 2016 values, your argument has to be that the 2016 valuation was wrong for your specific property, not that market conditions have shifted since.