The Best and Worst Cities in Canada for Property Taxes

Posted September 5, 2018 07:00

Many residents of Vancouver feel frustrated because, not only are the properties in their area among the most expensive in North America, but they will now receive new taxes. In a new Zoocasa study, Vancouver has the lowest property tax rate among Canadian municipalities, just above 0.24% of the value of a property. In fact, according to Bloomberg, it is the lowest property tax rate of any city in Canada or the US. UU., Surpassing Honolulu by 0.33%. A person who owns a $ 1,000,000 property would pay $ 2,468 in property taxes in Vancouver, Zoocasa estimated, compared to the $ 6,355 he had to pay in Toronto and $ 10,684 in Ottawa. width=630 height=620 /> Low property taxes may be part of the reason why Vancouver's real estate market has been so attractive to foreign buyers and investors. Sherry Cooper, an economist at Dominion Lending Centers and a former economist at the Bank of Montreal, noted that the annual cost of owning a home in Vancouver is about half that of Toronto, a third of Seattle and almost a fifth that of San Francisco. . This has been an important incentive for speculative investment, especially in high-end housing and, in turn, is a historical factor that has raised housing prices in the last 20 years, Cooper said. However, the city probably has a reason for such low rates: housing in many middle-class neighborhoods is now worth more than $ 2,000,000, and higher tax rates could bankrupt many retired seniors who live on a fixed income. The provincial government of British Columbia and the city of Vancouver are working to moderate the growth of housing prices. The city has introduced a school tax surcharge on properties over $ 3,000,000, much to the chagrin of high-end homeowners. In addition, the tax on foreign buyers from the province was increased to 20% this year, 5% more compared to last year. All policy changes seem to have had some effect. Home sales in Greater Vancouver fell to the minimum in the last 18 years in July, as buyers adopted a wait and see approach to what happened in the market. What should average owners pay? Tax rates alone do not determine what owners pay; The appraised value of a home is what the tax collector uses to calculate the rate. So, to have a broader idea of ​​who pays the highest and lowest taxes, we analyze the estimated bill of a typical average house in each city. Seen in this way, the numbers tell a different story. Vancouver is still relatively cheap, but it is not the least expensive. <img class=size-full wp-image-1525 aligncenter src=http://lisbethherrera.com/wp-content/uploads/2018/08/dims-1.jpeg alt= width=630 height=711   Keep in mind that Toronto and the nearby cities get the prize, with Hamilton leading the country to $ 6,939.59 for an average price home. That is the result of the massive escalation in home prices in southern Ontario in recent years. But with a little luck, the owners will not pay such high rates. Usually, when prices go up, the municipality reduces the tax rate to reduce the impact on the owners. That is most likely to happen in Ontario after the next round of property value assessments. Hopefully, other cities in the region will do the same, or homeowners in southern Ontario could be seriously affected at the time of the reassessment. Do you have any questions regarding the calculation of property taxes? Contact me and I will gladly assist you.

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