Location is one of the most influential factors when considering buying a home. Part of what makes a location attractive could be accessibility, nearby amenities, and lower property taxes.
Property taxes vary from city to city and are set by individual municipalities to cover the costs of various services in the community such as transportation, infrastructure, maintenance, and park services. Understanding which areas have higher or lower property tax rates can help ensure that the location you choose fits your budget for the long term.
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To find out how property taxes differ in the Greater Toronto Area, we calculated the average amount of tax paid, based on the municipal tax rate and average home price, in 32 cities.
More Expensive Areas Boast Lower Property Taxes
In general, municipalities with higher average home prices have lower property tax rates, while the municipalities with more affordable average home prices have higher property tax rates. For example, Markham has the lowest property tax rate at 0.645017%, meaning a homeowner would pay $9,146 on an average-priced home of $1,418,021. Toronto East, Toronto West, and Toronto Central all have a property tax rate of 0.666274%, with Toronto West having the second-lowest property tax bill on our list at just $6,870 despite having an average home price of $1,031,054.
Oakville, Richmond Hill, and Stouffville all have average home prices above $1,400,000, yet boast fairly low property tax rates in the range of 0.6% to 0.8%. King, which has the highest average home price on our list at $2,158,223, has a property tax rate lower than the majority of GTA cities at 0.80062%, however, due to its high average price, homeowners can expect to pay $17,279 on an average-priced home.
Durham Region and Dufferin County Most Heavily-Taxed Areas
Despite having average home prices several thousand dollars below the rest of the GTA, the west and north side of Toronto have property tax rates near or above 1%.
Homeowners in Orangeville have the highest property tax rate at 1.353041% and can expect to pay $11,498 in taxes on an average-priced home of $849,770. It’s worth noting that the average home in Orangeville costs nearly $500,000 less than Markham yet still has a larger property tax bill.
Oshawa has the second-highest tax rate at 1.325625%, with homeowners paying $11,052 on an average-priced home of $833,714. Every Durham Region municipality has a tax rate above 1%, with Brock and Clarington leading the way after Oshawa with tax rates of 1.232517% and 1.174555% respectively.
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