Understanding Toronto's Proposed Property Tax Increase: What It Means for You

Understanding Toronto's Proposed Property Tax Increase: What It Means for You

The City of Toronto is looking at a 6.9% property tax increase this year to support its $18.8-billion budget for 2025. This hike includes a 5.4% rise in residential property taxes and an additional 1.5% increase in building levy fees. For the average homeowner, this means an extra $210 on your annual bill, plus another $58 to fund improvements in transit and housing.

Here’s what’s going on and how it might affect you:

Why the Increase?

The city plans to use this extra revenue to expand services that impact our daily lives, including extending library hours and keeping outdoor pools open longer. They're also aiming to improve transit services and enhance emergency responses which can make our city a safer, more enjoyable place to live.

What This Means for Homeowners

The proposed tax increase will directly impact your wallet, especially since property taxes already saw a significant jump last year. It’s important to understand that these costs accumulate over time, making it more expensive to own a home in Toronto.

The Broader Impact on the Real Estate Market

Increased property taxes can cool off the real estate market. If it becomes more costly to own a home, fewer people might be able to buy, and selling a home at your preferred price could become harder.

Our Take

While we recognize the need for improved city services and infrastructure, the timing and scale of these tax increases can be tough on homeowners. Since property tax assessments haven't been updated since 2016, some of us might end up paying more than what seems fair based on outdated property values.

What Can We Do?

It’s crucial for all of us to stay informed and get involved in the city’s budget discussions. By understanding and participating in these talks, we can advocate for a balanced approach that supports city improvements while considering the financial realities of Toronto residents.

We encourage everyone to reach out to city representatives to express your thoughts and concerns about the proposed tax increase. Staying engaged and informed can help shape a budget that works better for all of us.