Who Pays the Least Property Tax in Ontario? The Answer may Surprise You
Either you are currently living in Ontario or considering moving to Ontario, you might wonder which cities have the highest and lowest property taxes in Ontario. Property tax rates in Ontario range between 0.59% and 1.78% of your home assessed value. Wonder which city’s rates are the lowest?
How is Ontario’s Property Tax Calculated?
The assessed value of a property determines how much its property tax will be.
In Ontario, the assessed value of properties is done by the Municipal Property Assessment Corporation (MPAC), which uses factors correlated to the market price to determine this value.
Almost for all cities in Ontario the municipality assessed property value is lower than the property’s market price. The ratio of property taxes in Ontario to the fair market value of the property is less than 1%. However, when you compare the property tax to the assessed value of a property, the ratio for some cities in Ontario will become larger than 1%.
Toronto property taxes – photo credit Toronto.ca
Which City Has the Lowest Property Tax?
The housing market in Toronto may be one of the hottest in the country, but Toronto property tax is the lowest in Ontario in comparison to both the fair market and assessed values. For a house with an assessed value of $500,000 in Toronto (e.g. market price of $750,000) with a property tax rate of 0.59%, the property tax is about $3,000.
Here are some factors responsible for Toronto’s low property tax: a dense city structure, relatively high real estate prices, and municipal land transfer tax. Toronto land transfer tax is unique since all other cities in Ontario only have provincial land transfer tax but Toronto land transfer tax is a combination of both provincial and municipal land transfer taxes.
When comparing the property tax rate in other Ontario cities e.g. Windsor, at 1.78% of home prices (for a home valued at $500,000 you would pay a property tax of almost $9,000) to that of Toronto; you need to also consider that Windsor has a less dense city structure and lower real estate prices.
Comparing Property Taxes in Toronto and Vancouver
Although the property tax rate in Toronto is one of the lowest in Ontario, it is still not as low as Vancouver’s property taxes. One reason for Vancouver’s low rates could be its mild weather. While cities in Ontario generally require more maintenance during its cold winter, British Columbia’s weather means it would need little maintenance, thus it has less need for property tax.
Recently however, Vancouver’s home prices have grown significantly, and their growth has been faster than any cities in Canada in the last 10 years.
Toronto Needs Better Infrastructure…
Toronto homeowners often feel like the low tax rate is good news, but it comes at a cost: the cost of poor city service provision e.g. the Toronto subway system, road networks, and recreational facilities.
If Toronto increases property tax so as to spend more on infrastructure e.g. fixing the city’s subway system, increasing the number of highways, it would be a step in the right direction, as the number of highways almost has not been increased within the last decade in spite of significant population growth.
Conclusion
- Property tax is calculated based on a municipal property assessed value
- A property’s assessed value is less than its fair market value in Ontario
- In Ontario, Toronto has the lowest property tax rate, almost 1/3 of what Windsor residents pay.
- The property tax rate in Toronto can however be increased so as to spend more on the city’s infrastructure e.g. the subway system, number of highways etc.
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August 2025 GTA Real Estate Market Update | Regan Irish
The August 2025 GTA Real Estate Market Update reflects renewed momentum and affordability in Toronto, Oakville, Mississauga, Burlington, and Muskoka. Thanks to steady interest rates and appealing home prices, July proved surprisingly dynamic. Let’s dig into the numbers and what they mean for you.
Interest Rates Remain Stable — Affordability Fueling Activity
In July 2025, the Bank of Canada maintained its key rate at 2.75%, its third consecutive pause. With lower borrowing costs now more accessible, affordability is encouraging a wave of renewed buyer activity.
GTA Market Overview: Sales Surge, Prices Slightly Dip
- Home Sales: 6,100+ transactions region-wide, marking a 10.9% increase YoY and the strongest July since 2021.
- Month-over-Month: Seasonally adjusted sales rose 13% from June to approximately 5,744 units, the biggest monthly gain in nine months.
- New Listings: Up 5.7% YoY, totaling 17,613 new offers.
- Price Trends:
- The MLS® Home Price Index (HPI) Composite Benchmark fell 5.4% YoY.
- The average GTA selling price dropped 5.5% YoY to around $1,051,719.
- Word on the street indicates the HPI drifted slightly lower—about $979,000, down 0.2% from June.
What It Adds Up To: Buyers are back in force—sales are outpacing new listings while prices softened, creating renewed market opportunities.
City Highlights
Toronto
A more balanced landscape—but some segments remain soft. Condos and detached homes see inventory rising; semis are steadier.
Oakville, Mississauga, Burlington & Muskoka
While TRREB doesn’t break down by city in these reports, regional trends suggest:
- Mississauga & Burlington: Strong rise in listings and dipping average prices give buyers leverage.
- Oakville: Stability in demand for luxury keeps discounts modest.
- Muskoka: Continued strong interest in sub-$2M waterfront properties should benefit from broader GTA momentum.
What This Means for You
- For Buyers:
Renewed affordability, rising inventory, and favorable interest rates make August a prime time to move. - For Sellers:
A more balanced market—strategic pricing and quick response will be key to success. - For Investors & Cottage Buyers:
Strong July sales in the GTA point to increasing investor interest; Muskoka remains a high-value lifestyle and investment destination.
Work With the GTA Real Estate Experts
Whether you’re planning to buy a Muskoka cottage, invest in a luxurious Oakville property, or explore options across Toronto, Mississauga, or Burlington, now is the time to act.
Regan Irish & Associates specializes in luxury, resale, and investment properties across the GTA and Muskoka. Our market insight and negotiation skills help you get the best results—whether buying, selling, or investing.
1320 Cornwall Rd Unit 103, Oakville, ON L6J 7W5
905.842.7677
Visit reganirish.com
Let’s make today’s market your opportunity—contact us today!
Ultimate Guide to Downsizing Your Home in Canada
Alex Irish & Associates and The Regan Team Announce Strategic Merger
Two of the most respected names in real estate, Alex Irish & Associates and The Regan Team, are excited to announce a strategic merger that will combine their expertise, resources, and market reach. This partnership of Regan Irish & Associates brings together the strengths of both firms, offering an enhanced real estate experience for clients across Southern Ontario, including expanding into new regions like Collingwood and Muskoka. The merger reflects both brokerages’ long-standing commitment to providing high-quality, relationship-focused service while leveraging new technologies and business strategies to ensure their clients receive unparalleled support.
“Alex is the consummate professional,” said Matthew Regan, CEO of The Regan Team. “She embodies the qualities of a person I would trust with my own home sale, and I am excited to partner with her to combine the best of both our brokerages. Our goal is to create a work culture that allows our agents to thrive, while being confident and equipped to provide the service our clients deserve. Our clients are going to benefit immensely with a wider and deeper net of potential buyers and an even further reach in marketing and advertising.”
Alex Irish, Founder of Alex Irish & Associates, emphasized that this partnership is the next natural step for her business. “By combining our resources and efforts we knew we’d be able to create a better real estate experience for our clients, our agents and business partners.” she explained. “This merger allows me to focus more on client relationships while also mentoring our agents who can continue to offer that same high level of service. Matthew has built a business model that aligns with my long-term vision, allowing us to scale while still maintaining the personal touch. Simply put, we are better together.”
Alex has built her brand over decades, particularly in the Oakville area, where her name is synonymous with excellence in real estate. Her personal approach, based on referrals and repeat business, has earned her a loyal clientele. Matthew has focused on recruiting top agents and scaling his business, growing The Regan Team to one of the top brokerages in Canada. This merger offers an exciting opportunity to grow into new territories. Together, the merged brokerage will have 15 offices spanning from Niagara to Toronto to Muskoka. This expanded presence means more resources for clients, from enhanced marketing capabilities to a wider net of potential buyers.
The merger will officially take effect on October 31, 2024, and the new branding and operations will be rolled out in the coming months.
About Alex Irish & Associates
Alex Irish & Associates, led by Alex Irish, is a highly respected name in Oakville, known for its personalized, referral-based business model and long-standing relationships with clients. Alex has built her brand on trust, excellence, and attention to detail, qualities that will remain at the forefront of the merged firm.
About The Regan Team
The Regan Team has a long-standing reputation for innovation, process-driven operations, and a focus on agent recruitment and development to provide the highest level of service for their clients. Under Matthew’s leadership, the brokerage has expanded its presence across Ontario, providing agents with the tools and support needed to succeed in a competitive market. For more information on this exciting merger, please contact Matthew Regan.