How Toronto Property Tax Is Calculated and When It Is Due in 2026

The short answer

Toronto property tax is calculated with a single formula the City publishes: assessed value multiplied by the total residential tax rate. The Municipal Property Assessment Corporation (MPAC) supplies the assessed value. The City of Toronto sets the rate, which for 2026 is 0.767311% for residential property.

That total has three parts: the City tax rate, the provincial education rate and a small City Building Fund levy. The City bills all three on one account, in two bills a year.

This guide covers the 2026 rate, a worked example, the instalment dates, how MPAC assessments work, the City’s relief programs for low-income seniors and people with disabilities plus how the Vacant Home Tax affects a family holding an empty home. Confirm anything specific to your own account with the City or MPAC.

The 2026 residential tax rate in Toronto

The City’s 2026 property tax rate table lists these residential rates:

Component	2026 residential rate
City tax rate	0.605295%
Education tax rate	0.153000%
City Building Fund	0.009016%
Total	0.767311%

The City Building Fund appears as its own line in the City’s rate table, separate from the City tax rate. Other property classes carry different rates. The multi-residential total, for example, is 1.208792%.

A worked example on an illustrative assessment

The figures below are an example only. They use a round assessed value of $1,000,000 and are not based on any real property. The number that matters is the assessed value on your MPAC notice, not your purchase price or today’s market value.

Component	Calculation	2026 tax
City tax	$1,000,000 x 0.605295%	$6,052.95
Education	$1,000,000 x 0.153000%	$1,530.00
City Building Fund	$1,000,000 x 0.009016%	$90.16
Total	$1,000,000 x 0.767311%	$7,673.11

A second illustration: an assessed value of $500,000 gives $3,026.48 in City tax, $765.00 in education tax and $45.08 for the City Building Fund, a total of $3,836.56.

To estimate your own bill, multiply the assessed value on your notice by 0.767311%. Other charges, such as a Vacant Home Tax that has gone unpaid, can also be added to a tax account.

MPAC assessments: what the number means

MPAC sets the assessed value that appears on your notice and tax bill. For the 2026 tax year, MPAC says the fixed valuation date remains January 1, 2016. The province postponed the 2020 Assessment Update because of the COVID-19 pandemic and extended that postponement, so there has been no province wide reassessment since.

In practice your assessment reflects what the property could have sold for on January 1, 2016. That is why it often sits well below recent sale prices. It is also why a buyer should never estimate taxes from the purchase price.

If you think your assessment is wrong

• Request for Reconsideration. MPAC reviews assessments free of charge. For residential property this step is required before an appeal.
• Deadline. MPAC set March 31, 2026 as the deadline for the 2026 tax year. The deadline for any notice is printed on the notice itself.
• How to file. Online through MPAC AboutMyProperty or by mailing MPAC’s form.
• Next step. If you still disagree, you have 90 days from MPAC’s decision to appeal to the Assessment Review Board.

2026 Toronto property tax due dates

The City issues two bills a year. Interim bills are mailed in January and final bills in May.

Payment option	Interim bill	Final bill
Regular instalments	March 2, April 1, May 1	July 2, August 4, September 1
Two instalment pre-authorized plan	March 2	July 2
Six instalment pre-authorized plan	March 2, April 1, May 1	July 2, August 4, September 1
11 instalment pre-authorized plan	February 17, March 16, April 15, May 15, June 15	July 15, August 17, September 15, October 15, November 16, December 15

The 11 instalment plan spreads the year across smaller monthly withdrawals, which some owners on a fixed income find easier to budget for. If you sell, check with the City how your plan ends and whether the buyer needs to enrol separately.

Relief for low-income seniors and people with disabilities

The City runs two property tax programs for eligible owners with limited income. Both apply to the increase in property tax, not the whole bill.

	Property Tax Increase Cancellation Program	Property Tax Increase Deferral Program
What it does	Cancels the tax increase	Defers the tax increase
Household income limit	$62,000 combined	$62,000 combined
Assessment limit	Below $975,000	None listed
Qualifying groups	Disability benefits; age 60 to 64 with GIS; over 65	Disability benefits; over 50 with a registered pension; age 60 to 64 with GIS; over 65

GIS is the federal Guaranteed Income Supplement. A widowed applicant aged 60 to 64 can qualify through the Spouse’s Allowance instead.

Rules that apply to both programs:

• the owner must have owned and lived in the home as their principal residence for one year or more before October 31, 2026
• the tax account must have no taxes owing for prior years and the water account must be paid in full
• age requirements must be met by December 31 of the tax year
• household income counts all listed owners living at the home, including a spouse
• applications must be made every year with supporting documents, such as a CRA Notice of Assessment

The deadline for the 2026 tax year is November 2, 2026. The City accepts applications online and by mail or fax. A deferral postpones tax rather than forgiving it, so ask the City how and when deferred amounts are repaid, including on a sale, before you decide which program suits you.

If you are weighing whether to stay in a house or move to something smaller, our downsizing in Toronto guide sets out the costs on both sides.

The Vacant Home Tax and an empty family home

The Vacant Home Tax matters most when a parent moves into care or passes away and the family home sits empty. Every residential owner in Toronto must declare the home’s occupancy status every year, even when someone lives there. If no declaration reaches the City by the April 30 deadline, the City assumes the property was vacant and sends a tax bill.

A property is taxable if it was vacant for six months or more in the taxation year. Beginning with the 2024 taxation year, the rate is 3% of the property’s Current Value Assessment. On an illustrative assessment of $1,000,000, that would be $30,000 for one year. For the 2025 tax year, notices went out in June 2026 and payments are due in three equal instalments on September 15, October 15 and November 16, 2026.

Several of the City’s rules fit the situations families face:

• Death of a registered owner. Available when the home was vacant for six months or more because an owner died. It may be claimed for up to three consecutive taxation years if the owner died in that year or the two previous years. A death certificate is required.
• Principal resident in care. Available when the person who lived there is in a hospital, long term care or supportive care facility for at least six months of the year. It may be claimed for up to two consecutive years and needs a letter from the facility.
• Transfer of legal ownership. Available in the year the home is sold, where the sale transfers 100 per cent of the property.
• Occupied by family. This is an occupancy status rather than an exemption. A home is treated as occupied if a family member or friend lives there as their principal residence for at least six months of the year.

An exemption still has to be claimed through the annual declaration. The City notes that an unpaid Vacant Home Tax is added to the property tax roll. It also says that when no declaration is made the tax forms a lien the next buyer can be held responsible for. Executors preparing to sell should keep the declarations current. Our guide to selling an estate home in Toronto covers the wider process.

Property tax when you buy or sell

When a home changes hands partway through the year, the seller may already have paid tax for days after closing. CMHC describes closing adjustments as a way to reimburse the seller for amounts already paid, such as property tax. Your lawyer calculates the figure. The City also lists a tax certificate fee of $90.33 and an ownership change fee of $51.61 for 2026. Our guide to closing costs when buying a home in Toronto lists the rest, while land transfer tax in Toronto explains the largest single closing cost.

What to do next

1. Find the assessed value on your latest MPAC notice and multiply it by 0.767311% to check your 2026 bill.
2. Put the remaining instalment dates in your calendar and consider the 11 instalment plan for next year.
3. If you or a parent may qualify for relief, gather income documents and apply before November 2, 2026.
4. If a family home is empty, make sure someone files the Vacant Home Tax declaration by April 30 and claims any exemption that fits.
5. Confirm details for your own account with the City of Toronto, MPAC or your lawyer, since this post explains the rules and is not personal advice.

Our buyer page explains how we factor property tax into a Toronto search. If you are planning a sale or a move and want to talk through the carrying costs, contact us.