Property taxes are made up of three components: the municipal portion (roughly 60%), the county portion (24%) and the education portion (16%). The rate (also called the mill rate) for each portion is set independently by its own body (the province sets the education levy).
The total rate is called the blended rate. The town’s portion is the town-own rate. Usually the blended rate is used because that reflects best what homeowners see. The rate depends on the type of property you own: residential, commercial, industrial all have different rates. Single-family and multi-residential are also different.
Let’s look at how taxes were calculated in 2014 for a single-family house valued at $200,000:
Total taxes payable will be $2,526.31, broken down as follows:
- Education levy $406.00
- County levy $608.00
- Town levy $1,512.32
The value of your home – of every home in Ontario – is set by MPAC, the Municipal Property Assessment Corp. This is an independent provincial agency headquartered in Pickering. It sets the value of your home through a computer model that looks at the value of properties around you and at real estate sales in your neighbourhood.
This model means your home value can increase whether you do anything to it or not.