How Do Property Taxes Work?

How Do Property Taxes Work

Property taxes are a set of taxes that are paid to your local government in Canada. They vary by the municipality but generally go towards the upkeep of public services, police, schools, roads, sewers, and many other things.

All homeowners need to pay property taxes and they are calculated based on the assessed value of your property and your local tax rate. The property tax rate can vary per town and city, even in the same region.

Property taxes can be quite confusing, especially to new homeowners, so we’ve answered a few of the most asked questions on property taxes here to help you out a little.

How Are Property Taxes Calculated?

Property taxes are generally calculated by multiplying the assessed value of the property in question by the local residential rate. As this rate differs depending on where the property is, it is quite difficult to work out the tax rate of a house you do not own.

There are many online calculators to help you get a better idea of the kind of property tax you will be paying before you buy. The Niagara Region provides a handy property tax calculator to help you get a general idea of what to expect to pay on a property you are interested in. It should be noted that property tax is re-assessed every four years, often resulting in an increase.

How Do I Pay My Property Taxes?

So, how do you actually pay property taxes? There are quite a number of ways you can pay your property taxes and these include:

  • An online system – Most municipalities have their own dedicated online system to make the paying of property taxes simple. Find the unique property tax payment details for your municipality.
  • Through your mortgage provider – In many cases, you can have your mortgage lender pay your property taxes on your behalf. This varies based on your lender and municipality, so speak with your mortgage provider or financial institution today.
  • By mail – You can mail a cheque to your local government to pay your property taxes.

There are other ways to pay property taxes but it is generally advised that you use an online option to pay. This is because it is a safer transaction and allows you to meet the property tax deadline in a timely manner.

What Are Property Taxes in the Niagara Region?

Every four years, a new assessment of your property will be done. The last assessment of property values in the Niagara Region was in 2020. Once this value has been set, it is used to calculate your property taxes by using the annual tax rate that varies across municipalities. Below you will find the 2021 tax rate information for each municipality in the Niagara Region:

Want to Buy or Sell a Home in the Niagara Region?

If you’re looking to buy a home in the Niagara region, Davids and DeLaat are dedicated to supporting you throughout your journey. Get in contact with our team of experienced realtors today. We can provide you with guidance throughout the entire home buying process and provide you with the information you need to know about property taxes in the Niagara Region.

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