Property taxes in Ontario can vary significantly depending on where you live. Even with the same home value, someone in Toronto may pay thousands less than a homeowner in Windsor or Thunder Bay.
Understanding your city’s tax rate helps you plan smarter, especially if you’re buying or budgeting in 2025.
Example:
Home assessed at $700,000 x 1.2% tax rate = $8,400/year
Your final property tax bill is based on the municipal + education tax rates, applied to your property’s value as assessed by MPAC (Municipal Property Assessment Corporation).
2025 Ontario Property Tax Rates by City (Estimates)
| City/Town | 2025 Tax Rate | Avg Home Price | Est. Annual Tax (on $700K) |
|---|---|---|---|
| Toronto | 0.66% | $1.12M | $4,620 |
| Ottawa | 1.14% | $710K | $7,980 |
| Mississauga | 0.83% | $965K | $5,810 |
| Markham | 0.67% | $1.3M | $4,690 |
| Hamilton | 1.26% | $775K | $8,820 |
| London | 1.36% | $630K | $9,520 |
| Brampton | 1.04% | $900K | $7,280 |
| Thunder Bay | 1.58% | $350K | $11,060 |
| Sudbury | 1.46% | $480K | $10,220 |
| Windsor | 1.78% | $570K | $12,460 |
📌 Note: These are estimated effective tax rates (municipal + education). Final taxes depend on current MPAC reassessments.
Cheapest Cities for Property Tax (2025)
- Toronto – 0.66%
- Markham – 0.67%
- Richmond Hill – ~0.70%
- Vaughan – ~0.75%
- Mississauga – 0.83%
💡 Low rates, but high home prices. You’ll pay less per $1,000 of value, but the value is higher.
Highest Property Tax Rates in Ontario (2025)
- Windsor – 1.78%
- Thunder Bay – 1.58%
- Sudbury – 1.46%
- London – 1.36%
- Hamilton – 1.26%
💡 Higher rates, but often more affordable homes. Still, be ready for larger annual tax bills.
Hidden Property Tax Fees to Watch Out For
Even if you know your city’s rate, here are extra costs that can sneak in:
- Supplementary Tax Bills – MPAC sends updates mid-year for new builds, additions, or renovations.
- Development Charges – Often added to new builds and rolled into closing costs.
- Education Tax – Set by the province (~0.153%) and included in your final rate.
- Special Levies – Stormwater, waste collection, transit, or local improvement charges, varies by city.
Budget Smarter, Not Just Cheaper
It might sound smart to buy in a low-tax area like Markham or Vaughan, but don’t forget, you’re also paying for a more expensive home.
In cities like Windsor or Thunder Bay, you may get more house for less, but higher taxes can eat away at those savings over time.
👉 Bottom line: Factor property taxes into your full cost of ownership, not just your mortgage.
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