Last updated March 2026
Property taxes are one of the biggest ongoing costs of owning a home in Ontario. Unlike mortgage rates, which fluctuate with interest markets, Ontario property taxes are set every year by your local municipality and used to pay for schools, roads, emergency services, transit and more.
In 2026, many Ontario cities are planning modest tax increases, while overall average costs continue to climb along with home values. Below is a breakdown of how much homeowners are paying — based on the latest available data — and how property taxes vary across the province.
How Property Taxes Work in Ontario
Ontarians pay property tax based on:
- Assessed value of your home (from the Municipal Property Assessment Corporation, MPAC)
- Combined tax rate (municipal + education) that your city sets annually for your property class (usually “residential”).
Example: If your home is assessed at $700,000 and your total tax rate is 1.0%, you’d pay roughly $7,000 per year in property taxes.
Average Property Tax Burden in Ontario (2026 Estimated)
Data from several tax calculators and city budgets suggests the average Ontario homeowner pays between $7,000 and $8,000 per year in property taxes, which is higher than most Canadian provinces.
| Municipality | Approx. Tax Rate (2025) | Average Home Price † | Estimated Annual Tax |
|---|---|---|---|
| Toronto | ~0.76% | ~$942,300 | ~$7,161 |
| Ottawa | ~1.23% | ~$615,500 | ~$7,571 |
| Mississauga | ~1.04% | ~$973,300 | ~$10,122 |
| Hamilton | ~1.43% | ~$725,200 | ~$10,370 |
| London | ~1.68% | ~$552,800 | ~$9,287 |
| Waterloo | ~1.37% | ~$405,000 | ~$5,530 |
| Greater Sudbury | ~1.29% | ~$230,000 | ~$2,967 |
† Average home prices vary by city and are approximated from the latest market data.
📌 Note: Municipal tax rates change each year when city councils approve budgets. Final 2026 rates will be confirmed by spring 2026 and published on municipal sites.
Examples of What 2026 Property Taxes Might Look Like
To make this more concrete, here’s what a homeowner might pay in 2026 (approximate projected amounts based on latest rates tied to 2025 data):
- Toronto: A $900,000 home at ~0.76% → ~$6,840/year
- Ottawa: A $600,000 home at ~1.23% → ~$7,380/year
- Mississauga: A $950,000 home at ~1.04% → ~$9,880/year
- London: A $550,000 home at ~1.68% → ~$9,240/year
- Waterloo: A $400,000 home at ~1.37% → ~$5,480/year
These are estimated tax bills; your actual amount will depend on your specific assessment value and the final 2026 tax rates set by your municipality.
Recent and Projected Tax Increases
Many Ontario cities budget for annual increases to keep up with service costs and inflation:
- Mississauga announced a total property tax increase of ~5.21 % for 2026, meaning an extra $377.37 per $700,000 assessed value compared to the prior year.
- Hamilton’s proposed 2026 budget includes a ~4.25 % residential tax increase as part of its planning.
- In Halton (including Milton), combined regional and local tax increases for 2026 are estimated around 4.75 % total depending on policy decisions.
How to Lower Your Property Taxes
Here are a few strategies Ontario homeowners use:
✔️ Appeal your MPAC assessment if you believe your property value is too high (demonstrated lower value may lower taxes)
✔️ Check for exemptions or deferral programs for seniors or low-income homeowners, available in some Ontario municipalities
✔️ Understand that education tax rates are set provincially and apply across the board in Ontario
Quick Tip
Ontario’s property taxes are based on both your property’s assessed value and local rate, neither control alone tells the full story. Cities with lower rates (like Toronto) may still have high tax bills because of high home prices, while smaller cities with higher rates may have lower overall bills because home values are lower.
References
City of Mississauga. (2026, January 28). Mississauga’s 2026 budget adopted. https://www.mississauga.ca/city-of-mississauga-news/news/mississaugas-2026-budget-adopted/
City of Hamilton. (2026, January 20). Mayor releases 2026 Proposed Tax Budget. https://www.hamilton.ca/city-council/news-notices/news-releases/mayor-releases-2026-proposed-tax-budget
City of Waterloo. (2025). Property tax rates. https://www.waterloo.ca/water-and-tax-billing/tax-billing/check-property-tax-rates/
Nesto. (2026, January 30). Guide to Canadian property taxes. https://www.nesto.ca/home-buying/property-tax-calculator/
Ontario Housing Market. (2025, July 27). Ontario property tax rates by city: What homeowners need to know. https://ontariohousingmarket.com/2025/07/27/2025-ontario-property-tax-rates-by-city-what-homeowners-need-to-know/
Spring Financial. (n.d.). Average property taxes by province in Canada. https://springfinancial.ca/blog/homeowner-finances/average-property-taxes-by-province-in-canada/
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