As we move into 2024, municipalities and cities across the country are beginning to unveil their budgets for the new year. Central to these financial plans is a recurring trend: an increase in property taxes. As we emerge from the pandemic, many municipalities are seeking to offset the financial challenges they faced in recent years. This results in some significant tax increases. Amidst this affordability crisis, municipalities from Ontario to British Columbia have announced proposed property tax increases of between 2% and 15%. But how do these increases compare to previous years?
Zoocasa analyzed property tax rates from 2014 to 2024 for six major Canadian cities. We did so to learn how much property tax rates have fluctuated over the past decade. For the purpose of this report, the total residential tax rate was used for each city except Toronto. The residential tax rate is used exclusive of city building funds and other levies. For the 2024 tax rate, we have included the speculated tax rate, as the finalized rates are expected to be announced in February. It’s important to remember that property tax rates differ city by city and can be influenced by a number of factors unique to the municipality.
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Calgary and Vancouver Lead in Property Tax Changes from Opposite Directions
Both Vancouver and Calgary governments have proposed a more than 7% increase to property taxes in 2024. But a look at their historical rates shows diverging paths. In 2014, the residential property tax rate for Vancouver was 0.367794% and the proposed tax rate for 2024 is 0.298925%. That represents an 18.7% decline in the property tax rate. Since 2017, Vancouver’s property tax rate has remained below 0.3%. However the proposed 2024 rate is going to be the highest since 2016. This means Vancouver homeowners with a home assessed at $500,000 can expect to pay around $1,495 in property taxes, while homeowners with a home assessed at $1,000,000 can expect to pay around $2,989 in propert taxes.
On the other end of the spectrum, Calgary has experienced a 14.7% increase in the property tax rate since 2016 (historical property tax rates were only available until 2016 from the municipality website). Calgary has proposed a 7.8% increase in property taxes in 2024. That means the rate will increase from 0.657180% in 2023 to 0.70844% in 2024. This translates to about $3,542 in taxes for a home assessed at $500,000 – that’s more than twice the amount a Vancouver homeowner would pay on a home with the same assessed value.
Winnipeg, despite having the highest property tax rate among the cities we analyzed, has actually experienced a 3.9% decrease in the property tax rate since 2014. In 2014, the residential tax rate was at 2.8481%, while the 2024 speculated rate is set to be 2.736437%. However, this does represent a 3.5% increase from 2023.
Ontario Property Changes
However, of the cities we analyzed, Toronto will experience the largest property tax increase from 2023 to 2024 at 9.5%. After Calgary, Toronto has also experienced the second-largest 10-year increase in the property tax rate at 8.9%. Which rises from 0.508666% in 2014 to the speculated rate of 0.554157% in 2024. Toronto homeowners could expect to pay around $2,771 in property taxes for a home assessed at $500,000 and $5,542 for a home assessed at $1,000,000.
Hamilton follows with the second-largest increase from 2023 to 2024 at 7.9%. Compared to the other cities we analyzed, Hamilton has not experienced as much of a change in the past 10 years. From 2014 to 2024, the property tax rate in Hamilton increased by 3.2%. At 1.431833% this was the second-highest property tax rate of the cities we analyzed. This means that for Hamilton homeowners, whose homes are assessed at $500,000, can expect to pay around $7,159 in property taxes.
Ottawa experienced the smallest tax increase from 2023 to 2024, rising by a proposed 2.5%. This comes out to a 2024 speculated property tax rate of 1.198508%. 6.4% higher than the 2014 property tax rate. Homeowners in Ottawa can expect to pay around $5,993 in property taxes for a home assessed at $500,000.
Whether you’ve taken property tax rates into account or not, it’s always best to speak to an expert real estate agent who can walk you through the process of buying a home. And they can inform on what costs you’ll need to consider that you may have overlooked. Give us a call today to connect with a qualified real estate professional!
