At this point, Ontario is well-known for its nearly impossible-to-own real estate. But, a new report revealed that the property taxes aren't so bad in some Ontario cities, which could make buying a home a slightly more attainable prospect.
A new report by Zoocasa broke down the property tax rates across the province over the past year, which varies greatly depending on where you live.
For those of you who don't know how property tax is calculated, that amount is determined by your home's value, the residential tax rate in your city, and the province's education tax rate.
"Paying your taxes will be a financial obligation over the course of your home's ownership, so it's important to understand how they may impact your household's bottom line," the report stated.
The top six cities with the lowest property taxes for 2021 are Toronto, Markham, Richmond Hill, Vaughan, Milton, and Oakville.
It may seem surprising that Toronto is currently possessing the lowest property taxes in the province. But, Zoocasa reveals that cities that boast more expensive real estate and have a higher population size usually have lower property tax rates because there are more people contributing to the City's bill and maintaining their operating budget.
So that's why smaller cities have way higher property tax rates because they have cheaper real estate and fewer people paying municipal taxes.
The six Ontario cities that have the priciest property tax rates are the following (rounded to the nearest hundredth):
- Windsor - 1.82%
- Thunder Bay - 1.59%
- Sault St. Marie - 1.59%
- North Bay - 1.57%
- Sudbury - 1.55%
- St. Catharines - 1.46%
Even though the 6ix has the lowest property tax rate in the entire province, Zoocasa named it as one of the worst cities to buy real estate in Ontario back in July. Oakville, another city with a cheaper property tax, was also included in that listing.