How Toronto property tax is calculated
Toronto property tax is the current-year phased-in assessed value set by the Municipal Property Assessment Corporation (MPAC) multiplied by the total tax rate for the property class.[tor_rates] The total rate has three parts: the city rate set by City Council, the education rate set by the Government of Ontario, and the City Building Fund levy.
The city's own example: $692,140 × 0.767311% = $5,311 a year ($5,310.87 unrounded): $4,189.49 city, $1,058.97 education and $62.40 City Building Fund.[tor_rates]
Toronto property tax rates for 2026
The 2026 residential rate is 0.767311%, and commercial and industrial properties pay roughly three times that because their education rate is 0.88%.[tor_rates]
| Class | City | Education | City Building Fund | Total |
|---|---|---|---|---|
| Residential (houses, condos) | 0.605295% | 0.153000% | 0.009016% | 0.767311% |
| Multi-residential (7+ rental units) | 1.047960% | 0.153000% | 0.007832% | 1.208792% |
| New multi-residential | 0.605295% | 0.153000% | 0.009016% | 0.767311% |
| Commercial | 1.411477% | 0.880000% | 0.010509% | 2.301986% |
| Industrial | 1.514233% | 0.880000% | 0.022541% | 2.416774% |
| Pipelines | 1.164239% | 0.880000% | 0.017342% | 2.061581% |
| Farmlands | 0.151324% | 0.038250% | 0.002254% | 0.191828% |
Occupied condominium buildings are taxed at the residential rate. Qualifying new purpose-built rental buildings use the new multi-residential class for 35 years, and since 2025 a new multi-residential subclass cuts the municipal tax on qualifying properties by 15%; eligible small businesses get 20% off the commercial rate.[tor_rates]
Toronto property tax by home value
At 2026 rates, every $100,000 of assessed value costs $767.31 a year. A $1,000,000 assessment pays $7,673.11, $132.24 more than in 2025.[tor_rates][tor_2025][tor_2024]
| Assessed value | 2026 tax | 2026 per month | 2025 tax | 2024 tax |
|---|---|---|---|---|
| $500,000 | $3,836.56 | $319.71 | $3,770.44 | $3,576.45 |
| $700,000 | $5,371.18 | $447.60 | $5,278.61 | $5,007.02 |
| $900,000 | $6,905.80 | $575.48 | $6,786.78 | $6,437.60 |
| $1,100,000 | $8,440.42 | $703.37 | $8,294.96 | $7,868.18 |
| $1,500,000 | $11,509.67 | $959.14 | $11,311.31 | $10,729.34 |
| $2,000,000 | $15,346.22 | $1,278.85 | $15,081.74 | $14,305.78 |
The residential rate rose from 0.715289% in 2024 to 0.754087% in 2025 and 0.767311% in 2026. The City Building Fund levy, part of each year's increase, was set by Council in 2019 to rise by 1.5% a year from 2022 to 2026.[tor_rates]
Why your bill may differ
- Assessment: use the current-year phased-in value from MPAC, not a recent sale price.
- Special charges: Business Improvement Area levies, local improvement charges and Home Energy Loan Program repayments are added to the instalments.
- Unpaid city charges (water, solid waste, by-law fees) left for more than 90 days can be transferred to the tax account.
- Commercial and industrial vacant land is taxed at a rate about 30% below the full rate for its class.
Home renovation and moving services in Toronto usually carry Ontario's 13% HST; work it out with the HST calculator. Compare provinces on the sales tax calculator for Canada, or check the minimum wage in Ontario if you are budgeting on hourly pay.
Frequently asked questions
What is the property tax rate in Toronto for 2026?
0.767311% for residential properties (0.605295% city, 0.153% education, 0.009016% City Building Fund).
How much is property tax on a $1 million house in Toronto?
About $7,673.11 a year in 2026, or $639.43 a month, if the MPAC assessed value is $1,000,000.
How is Toronto property tax calculated?
Assessed value × total tax rate for the property class. The assessed value comes from MPAC; the rates are set each year by the City and the Province.
What is the commercial property tax rate in Toronto?
2.301986% in 2026 (1.411477% city, 0.88% education, 0.010509% City Building Fund). Eligible small businesses get 20% off the commercial rate.