A Toronto property tax bill is your home’s assessed value multiplied by a total tax rate. In 2026 that rate is 0.767311%, and it has three parts: the City’s municipal rate, the City Building Fund and the education rate set by the province. This article shows how the parts fit together, using the City’s own example.
The formula on your bill
The City states it plainly: the current phased-in assessment is multiplied by the City tax rate, the City Building Fund levy and the education rate. Its example uses the average assessed home of $692,140, and $692,140 times 0.767311% is $5,311.
For a quick check on your own home, use the property tax calculator.
The municipal share
The City rate for 2026 is 0.605295%, which comes to about $4,189 on the average home. It pays for services such as police, fire, parks and the TTC’s operating costs. Council sets it each year in the budget. The 2026 budget, adopted February 10, 2026, raised the residential operating levy by 0.7%.
The City Building Fund line
The fund is a separate levy of 1.5% a year for transit and housing capital projects. Its line for 2026 is 0.009016%, or about $62 on the average home. Together the 0.7% and 1.5% make the 2.2% headline, which the City puts at $91.53 a year for that home.
The education share
The province sets education tax, and the City collects it. The residential rate is 0.153000%, about $1,059 on the average home. It is the same across Toronto and it did not change between 2024 and 2026, so a City budget vote cannot move it.
The three lines add up: $4,189 plus $1,059 plus $62 is $5,310, which matches the City’s $5,311 after rounding. About four dollars in five stay in City hands.
Where the assessment comes from
MPAC, the Municipal Property Assessment Corporation, sets assessed values. Its valuation date is January 1, 2016. The province postponed the reassessment due for 2020, and a regulation filed on August 16, 2023 extended that through the 2021 to 2024 cycle. For 2026 the City says assessments remain at fully phased-in 2016 values.
Increases in value are phased in over four years while decreases take effect at once. Between full cycles, MPAC reviews properties for changes such as new construction, renovations or demolitions, and sends a notice when the assessment changes. That is why an assessment can differ from a neighbour’s.
If you disagree with the assessment
For residential properties, file a Request for Reconsideration with MPAC first. If the result does not satisfy you, appeal to the Assessment Review Board within 90 days of the recommendation. Other property types can file the request or appeal directly to the board by March 31.
The City notes you don’t need a tax consultant, and that consultants have no link to the City. The City does not mail notices about lowering your assessment.
Paying the bill
The interim bill is based on the previous year’s taxes. In 2026 its instalments were due March 2, April 1 and May 1. The final bill, issued in May, reflects 2026 rates less what you paid, with instalments on July 2, August 4 and September 1. Pre-authorized plans of 2, 6 or 11 payments are available.
The City adds 1.25% to an overdue amount on the first day of default and on the first day of each month after, and says these charges cannot be waived. An instalment of $903.67 paid a day late costs $11.30.
Relief and reductions
Low-income seniors and people with disabilities can apply for the Property Tax Increase Cancellation or Deferral programs. The 2026 household income limit is $62,000, cancellation also needs an assessment below $975,000, and applications close November 2, 2026.
Small businesses in the small business subclass got a 20% property tax reduction in 2026. Eligibility depends on the City’s criteria. Buyers should also budget for land transfer tax, which the Toronto land transfer tax calculator covers. Related tools: the Toronto Vacant Home Tax calculator, plus all our real estate calculators.
Sources
- City of Toronto, property tax rates and fees
- City of Toronto, assessment and appeals
- City of Toronto, 2026 Budget now final
- MPAC, the assessment cycle
Common questions
How is Toronto property tax calculated?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.