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How are property taxes calculated in Canada?

“Always pick your yard based on your Summer lifetstyle.”


February 21, 2019 - Karl Yeh

Property taxes are assessed by the city and they're calculated based on the size of your actual land, any amenities in the area, perhaps a school's going up, a certain bush station is coming about.

If you're buying a home, wondering how much property tax you'll end up paying? In this episode, we discuss how your property taxes are calculated, the role of the assessor and how often they are paid. We also explore if property taxes are based on assessed or purchase price and if property taxes always increase year over year. 


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Hi everyone. I'm Karl and welcome to another Homebuyer's School video, a channel where you get the latest strategies, tactics and tips from home buying experts.

Remember if this is your first time on this channel and you want to get the latest strategies from the experts, hit the subscription button below, hit the little notification bell so [00:00:30] you don't miss anything.

So today I'm joined by Jessica McNabb, Area Manager with Brookfield Residential and the question we're gonna answer today is:

How are property taxes calculated?

So Jessica, when you're buying a home obviously you want to know how much property taxes are you paying every year.

So how are they calculated?

Jessica McNabb:          

Yup so that's one of the main questions that we hear actually.

Property taxes are assessed by the city and they're calculated based on the size of your actual land, any amenities in the area, perhaps a school's going up, a certain bush station is coming about.

So that's typically how they are assessed [00:01:00] .

Karl Yeh:                      

So Jessica how are property taxes actually assessed.

What actually does an assessor go in and do to actually figure out the amount that you have to pay?

Jessica McNabb:          

For sure.

So this is one of the main questions that people will ask.

Usually the assessor will look at the size of your property, they look at the size of the home, the square footage that's sitting on that piece of property.

It could be that it's a corner lot, it could be that it's a pile lot, you have a little bit bigger of a lot and then of course the amenities [00:01:30] in the area. If there's a grocery store, if there's a school in the area.

Karl Yeh:                       Do they also take into account how many years, how old that house is.

Jessica McNabb:           Mm-hmm (affirmative) yeah absolutely.

Karl Yeh:                       And then

How do property taxes actually affect my personal taxes?

Jessica McNabb:          

That's a great question.

So if you have your own home business for example, you have an office out of your house. You can actually have deductions and tax write offs based on that.

Karl Yeh:                      

Oh okay[00:02:00].

Are property taxes based on the assessed price or the actual purchase price of the house?

Jessica McNabb:          

Based on the assessed price.

So the property taxes will be valued off of the size of the land typically and then the house that sits on that piece of land.

Karl Yeh:                       And

How often are they paid and how are they paid?

Jessica McNabb:          

So you can pay them by two choices.

You can pay once a year or you can have them put onto your mortgage and you can have it as a monthly payment.

Karl Yeh:                      

If you do put it on your monthly mortgage, it's [00:02:30] up to the city to increase it or decrease it every tear right?

Jessica McNabb:           Right.

Karl Yeh:                      

Would you expect any increases or decreases within the year or is it usually they give you an assessment at the beginning of the year and that's how much you have to pay?

Jessica McNabb:          

They'll give you an assessment once a year typically at the beginning of the year in the spring and then it's from there if you want to choose to pay it once or if you want to pay it monthly.

And earlier you had asked about how they're paid so you will actually go into your financial institution or call and have them put into your monthly taxes so any [00:03:00] bank or branch and they'll pay to the city for you.

Karl Yeh:                      

Is it pretty much an expectation that property taxes will increase every year?

Jessica McNabb:          

They typically do, they can stay the same. They typically do increase each year.

Karl Yeh:                       And

Is there anybody exempt from paying property taxes?

Jessica McNabb:          

There are actually so some indigenous cultures can be exempt. Some veterans, some seniors.

There are certain parties that can be exempt from property taxes and you can go online actually onto the government website and [00:03:30] you can file to see if you're exempt.

Karl Yeh:                       Do you have anything else to add in terms of property taxes?

Jessica McNabb:           No I think we've covered it.

Karl Yeh:                       Awesome thank you.

So the question of the day I have for you is:

Did potential property taxes on a home actually influence your decision to buying that home?

Let us know in the comment section below. Remember if you enjoyed this video or found it helpful, hit the thumbs up button, remember to comment and remember to subscribe. Thank you and we'll catch you next time.



Your turn:

Let us know if you have additional home buying questions that we can answer by submitting them in the comments section below. 

Homebuyer's School publishes new content weekly so subscribe or check back regularly for the latest information, strategies and tips from homebuying experts. 

About Jessica McNabb:

University of Alberta: Bachelor of Science in Registered Nursing 2011 McConnell Place North Alzheimers Care Centre 3 Years - Client Care Leader Brookfield Residential 6 Years - Area Sales Manager Sold over 200 Homes

While a career in Nursing was extremely fulfilling, I also wanted to explore a career in home sales. After 6 years of being in the New Home Sales Industry, I still feel the same sense of fulfillment through taking clients from start to finish building their home.

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