Ontario Property Tax Assessment: What Homeowners Should Know in 2026

In Ontario, your property tax bill is your home’s MPAC assessed value multiplied by your city’s tax rate plus the provincial education rate. Province-wide reassessments have been postponed for several years, and the province has said it’s reviewing the system. Here’s how it works today and what any reform could mean for your bungalow, as of September 2026.

How is property tax calculated in Ontario?

Three pieces make up your bill:

1. Assessed value: set by the Municipal Property Assessment Corporation (MPAC), based on a set valuation date.
2. Municipal tax rate: set each year by your city or town to fund its budget.
3. Education tax rate: set by the province.

Your bill equals the assessed value multiplied by the combined rate. Because cities set their own rates, two bungalows with the same assessment can pay very different amounts in Toronto, Brampton or Hamilton.

Why Toronto’s rate looks low

Toronto’s residential rate is lower than in many surrounding cities, partly because home values there are high. A lower rate on a higher value can still produce a sizable bill. Always look at the actual annual tax amount on a listing.

Why have reassessments been on hold?

MPAC normally updates values on a regular cycle. The province postponed the most recent province-wide reassessment, so most homes are still assessed at values from an older valuation date. That’s why your assessment may look far below what your bungalow would sell for today.

The province has said it is reviewing the property assessment and taxation system. As of September 2026, check MPAC and your municipality for the latest status, since timing and details can change.

What could a reassessment mean for your bungalow?

A reassessment doesn’t automatically raise everyone’s taxes. Cities set their budgets first, then adjust rates to raise that amount. What matters is how your home’s value changes compared with the average in your municipality.

If your home’s value changed…	Likely effect on your share of taxes
Faster than the city average	Your share may go up
About the same as the average	Your bill may change little beyond budget increases
Slower than the average	Your share may go down

Increases from a reassessment have historically been phased in over several years, while decreases have usually applied right away. Any reform could change that approach.

What can change your assessment between reassessments?

Even without a province-wide update, MPAC can change your assessment when your property changes. Common triggers include:

• Building an addition, a bungaloft or a second storey
• Adding a garden suite or other new structure
• Creating a legal basement apartment or other additional unit
• Major renovations that require a building permit
• A change in how the property is used

Planning to add a unit? Our guide to using home equity to renovate covers the main options.

How to check and appeal your assessment

1. Review your notice. Look at your assessed value and property details on your MPAC notice or online account.
2. Check the facts. Confirm square footage, lot size, bathrooms, basement finish and other details.
3. Compare similar homes. MPAC provides information on comparable properties in your area.
4. File a Request for Reconsideration. Do this with MPAC by the deadline on your notice.
5. Appeal further if needed. If you disagree with MPAC’s decision, you can appeal to the Assessment Review Board.

Programs that can ease your property tax bill

• Senior homeowner grants: Ontario has offered a grant for eligible lower-income senior homeowners.
• Municipal deferral and rebate programs: many cities offer deferrals or rebates for low-income seniors and people with disabilities.
• Instalment plans: most municipalities let you pay monthly through pre-authorized payments.

Eligibility varies by city, so check with your municipality’s tax office. For larger questions, speak with an accountant or a real estate lawyer.

Frequently asked questions

Does a higher assessment always mean higher taxes?

Not necessarily. If your value rises at the same pace as your city’s average, your share of the tax load may barely change. Budget increases can still raise bills for everyone.

Will finishing my basement raise my property tax?

It can. Permitted renovations and new units may lead MPAC to update your assessment. The change depends on how much value the work adds.

Can I appeal my property assessment in Ontario?

Yes. Start with a Request for Reconsideration to MPAC. If you’re not satisfied, you can appeal to the Assessment Review Board.

Do buyers inherit the seller’s property tax?

The assessment stays with the property, and your lawyer adjusts the current year’s taxes on closing. Check the listing’s annual tax amount before you offer.

The bottom line on property tax assessment

Ontario property tax is driven by your assessed value, your city’s rate and the education rate. Watch for reassessment news, keep your MPAC details accurate and appeal if something looks wrong. Comparing homes across cities? Use our home comparison tool and check Peel Region bungalow listings to see how taxes differ by area.