Property tax is a real estate ad-valorem tax, calculated by a local government, which is paid by the owner of the property. We may not love them but it is one of the carrying costs that come with homeownership.
Property taxes are charged by the municipality you live in, and are used to pay for many city services such as garbage and recycling collection, sewer protection, road maintenance, snow removal, policing, fire protection and more.
How is the Amount Determined?
Once a year, municipalities across the province asses and determine their property tax rate, which is usually somewhere in the range of 0.5 to 2.5%. Your municipality’s property tax rate is multiplied by the market value of your home (not the purchase price), which can vary year-to-year based on the value of surrounding properties.
For example, if the market value of your home is $325,000 and your property tax rate is 1.5%, your property taxes would be $4,875.
Payment OptionsMost lenders provide the option to tack on your property taxes onto your monthly mortgage payment. With this option, your lender then takes on the responsibility of paying your municipality.
Alternatively, you can also pay the municipality directly, by phone, mail, online or by setting up a pre-authorized payment plan.
That is a wrap on property taxes and the basics on what you need to know about them.
If you have any more questions on property taxes, feel free to reach out to me as I would be more than happy to answer them for you.