How Property Tax Actually Works
Canadian property tax is set entirely at the municipal level. Each city calculates the rate it needs — its mill rate — to fund police, fire, transit, schools (via a provincially-set education portion), and other local services, then applies that rate to every property's assessed value. The formula is simple: annual tax = assessed value × mill rate. What makes comparisons tricky is that the rate and the assessed value move in opposite directions — a city with expensive homes can charge a much lower percentage and still raise the same revenue per household.
Typical 2025/26 Residential Rates by City
| City | Typical residential rate | Tax on a $700,000 home |
|---|---|---|
| Toronto, ON | ~0.767% | ~$5,371 |
| Vancouver, BC | ~0.336% | ~$2,355 |
| Calgary, AB | ~0.79% | ~$5,530 |
| Edmonton, AB | ~0.96% | ~$6,720 |
| Montréal, QC | ~0.80% | ~$5,600 |
| Ottawa, ON | ~1.14% | ~$7,980 |
| Winnipeg, MB | ~1.31% | ~$9,170 |
| Halifax, NS | ~1.17% | ~$8,190 |
Click any row to load that city's rate into the calculator. These are indicative composite residential rates (municipal plus, where applicable, education and other levies) for a typical year — actual current rates, valuation dates, and assessment methods differ by province and change annually, so treat these as a starting point, not a quote.
Why the Same Rate Can Mean Different Bills
- Ontario (MPAC): assessments use a fixed valuation date — currently January 1, 2016, phased in — which can lag well behind current market prices.
- British Columbia (BC Assessment): reassessed annually based on market value as of July 1 the prior year, so it tracks the market more closely.
- Manitoba: residential municipal tax is calculated on only 45% of assessed value, not the full value.
- Saskatchewan: residential municipal tax is calculated on 80% of assessed value.
- Québec: municipal and school tax portions are often billed and quoted separately.