When will I start paying property taxes on my new home and how is it assessed?

Property taxes on a new home in Ontario are based on an assessment by the Municipal Property Assessment Corporation (MPAC). MPAC assesses your home's current value and the municipality applies its tax rate to that assessed value to calculate your annual property tax bill.

For new homes, the initial assessment may not capture the full value of the completed home immediately, particularly for condominiums where units may be assessed before the project is fully registered. This can result in a lower initial tax bill that increases as MPAC updates its assessment to reflect the completed home. Some buyers are surprised to receive a significantly higher tax bill in year two or three compared to what they paid in the first year.

During the interim occupancy period of a condo, the builder pays property taxes to the municipality and passes through the estimated unit share to you as part of your occupancy fee. After final closing, property taxes become your direct responsibility.

You can review MPAC's assessment of your property at aboutmyproperty.ca and request a reconsideration if you believe the assessed value is incorrect. If you dispute the assessment, you can appeal to the Assessment Review Board within the specified deadline following receipt of your assessment notice.