One of the biggest expenses you’ll face as a homeowner outside of your mortgage is property taxes.
In Toronto, homeowners don’t pay a standard property tax amount. Instead, everyone’s tax bill is calculated based on the government’s assessed value of their home.
In real estate, location can have a big impact on a property’s value – but what about taxes? In this blog, we’ll go over property taxes in Toronto and whether or not they’re cheaper for homes in Etobicoke.
Is Etobicoke More Affordable Than Downtown?
If you’re wondering whether buying a home in Etobicoke rather than elsewhere in Toronto can help you save on property taxes, you’re probably a budget-conscious homebuyer – which isn’t a bad thing. Having a well-thought-out budget is an important part of buying and it can help you avoid financial worries down the line such as a power of sale situation.
Property taxes are a big part of your housing costs but they’re far from the only major expense to account for. So, before we get into the finer details of property taxes (and there are a lot), let’s look at the question from a different angle – is owning a home in Etobicoke affordable, and how does it compare to downtown?
One of Etobicoke’s biggest draws for homebuyers is affordability. In fact, it’s one of the last places in Toronto where you can find houses under $1,000,000 (at least at the time of writing). That said, every single house is unique. So while buyers can find great value in Etobicoke, there are plenty of properties in higher price ranges too.
At the end of the day, budget-conscious buyers should work with a local Etobicoke real estate agent who knows the market inside and out. They can ensure buyers are able to maximize every last bit of their budget.
Want to buy a house in Etobicoke? Have a look at these blogs next!
- Insider Tips For Buying a Home in South Etobicoke
- How to Buy a Home After You’ve Already Sold the One You Live In
- What Should You Know About Buying a Power of Sale Home in Etobicoke?
How Do Toronto Property Taxes Work?
Everyone knows that age-old saying about death and taxes. So it should come as no surprise that owning a home means paying tax on it. If you’ve done your property taxes before, you’ll know how complicated (and confusing) they can be.
Rather than paying a flat, pre-determined rate, property taxes in Toronto are based on a home’s assessed value. This number is a rough determination different from what the home was originally purchased for or potentially even listed on the market for.
A home receives its assessed value from the MPAC. This is a provincial organization that is responsible for determining a fair valuation for every home in Ontario. After determining a home’s value, the MPAC shares their results with the municipality – in this case, Toronto.
Toronto then applies their total property tax rate to the MPAC’s assessed value and there you have it – the total taxes owed by the homeowner.
*Keep in mind that this is a very simple breakdown. If you’re looking for in-depth advice, talk to a real estate agent.
What Determines a Home’s Assessed Value?
The MPAC has five main criteria when assessing a home’s value.
First, they consider the age of the property. After that, they’ll look at the total living area square footage and the size of the lot. Next, they’ll factor in the overall quality of construction and finally, the home’s location.
Yes, location does play a role in property taxes. However, it’s not as broad as simply Etobicoke vs Downtown. When it comes to location, MPAC can get pretty specific. They may define a home’s location right down to the neighbourhood, postal code, or even the street.
Have more questions about owning a home in Etobicoke? You may find these blogs handy!
- Your Guide to Upsizing in Etobicoke: From Condo Living to Your Dream Home in 2025
- Should You Buy a Tear Down Home in South Etobicoke?
- What to Know When Moving From a Condo to a House in South Etobicoke
When are Values Calculated?
The MPAC doesn’t reassess every home’s value every tax season. Instead, the assessment cycle is usually around every 4 years. However, due to disruptions from the COVID-19 pandemic, homes in Toronto are still being taxed based on their 2016 assessment until the end of 2025.
So, Are Property Taxes Cheaper in Etobicoke?
At the end of the day, there’s no difference between property taxes in Etobicoke and the rest of Toronto. That said, if you’re looking to make the absolute most of your home-buying budget, Etobicoke is a great place to start your search!
Buying a Home in Etobicoke?
If you’re thinking about buying a home in Etobicoke, you’ll want a local expert by your side – like me!
As a proudly local Etobicoke agent, I know our unique market better than the next agent. I have the connections, insights, and inside scoop to help you begin your journey of homeownership. After getting to know you and your family, we’ll work together to find a starter home that fits your needs, budget, and goals for the future.
Looking to buy a home in Etobicoke? I can help! Call or text me at 647-239-7587 or send me an email at melissa@southetobicoke.com to get started.
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