- Unpaid property taxes can become a growing balance on your tax account, so it is worth asking your municipality exactly what you owe and confirming your options with a lawyer.
- A tax sale is a last step that follows a long process, and contacting your municipality early gives you the most options.
- Exact interest rates, notices and time limits come from the legislation and your municipality, so confirm them for your property.
Falling behind on property taxes is stressful, particularly when you do not know how serious it is or how much time you have. How the process works in Ontario depends on your municipality and your situation, so acting early and confirming the steps with a lawyer is worth the effort.
This article explains the general sequence: how arrears build, the notices you can expect, and how a municipality may eventually sell a property. Specific rates and time limits are set by law and by your municipality, so treat this as a guide to the questions to ask.
How arrears build up
How a missed property tax payment is recorded and what it adds to your balance depends on your municipality and your situation, so it is worth confirming with a lawyer.
Look at your tax bill or call the tax office to learn the current balance, how any interest is being calculated and what is owing for each year.
What a municipality usually does
- Your municipality may contact you about overdue amounts.
- The steps it takes depend on your municipality.
- Further steps may follow if the arrears are not resolved.
- Which rules apply depends on your situation, so it is worth confirming with a lawyer.
Keep your mailing address current with the municipality, since missing a notice can cost you time.
When a tax sale can happen
Whether and when unpaid property tax can lead to a tax sale depends on your situation, so it is worth getting advice before you assume anything. When a municipality may begin the process, what notices you are owed and how long you have to pay all of the arrears depend on the legislation and your situation. These periods can be strict, so it is worth confirming them with a lawyer.
How the rules apply to your property also depends on your municipality, so check the details before you act. Ask your municipality for the exact amounts owing on your property.
Mortgages and others with an interest
If you have a mortgage, your lender may care about whether the taxes are paid, because unpaid taxes can affect its security. Some lenders pay the taxes themselves and add the amount to your mortgage balance. Check your mortgage terms and speak to your lender early.
Whether other lenders or co-owners have rights or receive notice depends on your situation, so it is worth confirming with a lawyer. If you co-own the home, talk to your co-owners about the arrears.
What to do next
- Ask your municipality for a current statement of arrears and interest.
- Ask whether a payment arrangement is available and get any agreement in writing.
- Open all mail from the municipality and respond promptly.
- Speak to your mortgage lender if your taxes are paid through the mortgage.
- Contact a lawyer as soon as you receive a formal notice, so you understand the deadlines that apply.
Frequently asked questions
How long before my home can be sold for unpaid taxes?
It depends on the legislated steps and time periods, which usually run over a long period. Ask your municipality for the status of your account and confirm the timing with a lawyer.
Will I be charged interest on overdue taxes?
Whether interest or penalties apply, and at what rate, depends on your municipality and your situation, so it is worth confirming with a lawyer. Your tax office can tell you the current rate.
Can I stop a tax sale?
Whether you can stop the process, and how, depends on your situation, so it is worth confirming with a lawyer. The amount and the deadline are specific to your property, so get them in writing.
Should I talk to my municipality or a lawyer first?
Contact your municipality early to understand your balance and options. If you have received a formal notice, it is sensible to speak to a lawyer as well.
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