Property taxes are one of those things Canadians scrutinize to the nth degree as they try to balance their cash flow. They may like to gripe when property taxes go up, especially as they never seem to go down. However the reality is they are the beneficiaries of the expense, at macro level at least because the money goes into their town.
How Canadian Cities Calculate their Property Taxes
Every year, a city like Calgary approves a budget of income and expenses. This includes a globular amount in respect of property taxes. Then it factors in a property rating factor. This applies across the board as a % of assessed property value.
Hence the property tax you pay depends on what your property is worth, and the municipal budget for the year. This is why Vancouver pays one of the lowest rates. That’s the result of a well-run city with the highest average property values in the country.
How Do Property Taxes Compare Across Canada?
Top real estate website Zoocasa ran a survey in August 2018 that appeared in Huffington Post. We believe the comparisons are still representative although the values may have changed slightly. This is what they found in terms of annual property taxes based on a property value of a million Canadian.
The Five Cities with the Highest Rates
Hamilton ($12,620) Winnipeg ($12,487) Halifax ($11,085) Regina (10,745) Ottawa ($10,684)
The Five Cities in the Middle of the Pack
Quebec City ($8,778) Edmonton ($8,687) Saskatoon ($8,656) Mississauga ($8,235) Montreal ($7,672)
The Five Cities with the Lowest Rates
St John’s ($7,300) Calgary ($6,357) Toronto ($6,355) Victoria ($5,204) Vancouver ($2,468)
Despite this, Vancouver is still the most expensive place to live in Canada overall. Immi Group’s ten most expensive cities to live in Canada in descending order are Vancouver, Toronto, Victoria, Calgary, Greater Hamilton, Ottawa, Edmonton, Saskatoon, Montreal, and Fort McMurray.
Which Way is the Calgary Rate Likely to Go?
A move in either direction has cash flow implications, especially if rentals are set for the year ahead. Calgary’s expenses are growing at a rate faster than inflation according to CBC Canada. The city has also been phasing out municipal business tax by blending it with non-residential property taxes.
Stonegate Equity has a number of investment properties for sale on its books with relatively low assessment values. These appear set to become valuable assets as the city retakes its rightful place as a great spot to live and do business. Call (587) 500-0417. Discover how Calgary could become your new home.