York Region Property Tax
York Region imposes annual property tax for all properties within its nine municipalities. The amount that is collected depends on the assessed value and the type of property.
Calculating Property Taxes
How is the amount of property tax that I pay determined?
The amount of tax you pay is calculated using the following formula:
“Assessed value of a property” X “Tax rate”
There are two parts to the tax rate:
- The municipal tax rate, which is set by your municipal government (Region of York and the local municipality that you reside in)
- The education tax rate, which is set by the provincial government.
A municipality can set different tax rates for different classes of property and the main classes include residential and farm, multi-residential, commercial and industrial.
What is current value assessment?
The current value assessment of a property is established by the Municipal Property Assessment Corporation. The current value assessment for properties in 2017 is based on a valuation date of January 1, 2016 with a four year phase-in for assessment increases through to 2020. Assessment decreases are recognized in 2017. For further information on how your assessment is calculated please contact MPAC.
How is your Regional property tax rate calculated?
The Region’s property tax rate is established annually by Regional Council and is based on budgetary requirements for the Region. The Region’s tax rate varies for each property type and class based on tax ratio weights.
The amount of tax paid for a property is determined by its current value assessment and by its property class. Tax ratios distribute the amount to be collected between property classes.
The tax ratio for a property class is calculated based on the residential class tax ratio, which is always "one". A property with a tax ratio of “two” would pay twice as much as a residential property for the same assessed value.
The Province has set “allowable ranges” for each property class. There is an upper and lower range for the tax ratio for each property class and any ratio that falls between the upper and lower ratio is allowable. In 2017 Council decided to change the tax ratios to the following levels:
Table 1: Tax Ratios and the Provincial Allowable Ranges for each property class.
|PROPERTY CLASS||2020 TAX RATIOS||PROVINCIAL ALLOWABLE RANGES|
|Residential||1.0000||1.0 to 1.1|
|Multi-Residential||1.0000||1.0 to 1.1|
|New Multi-Residential||1.0000||1.0 to 1.1|
|Commercial||1.3321||0.6 to 1.1|
|Industrial||1.6432||0.6 to 1.1|
|Pipelines||0.9190||0.6 to 0.7|
|Landfill||1.1000||0.6 to 1.1|
York Region’s Tax Ratios Compared to Nearby Municipalities
York Region currently has the lowest tax ratios in the Greater Toronto Area (GTA). The tables below compare York Region’s 2020 tax ratios with those of other municipalities in the GTA.
|City of Toronto||1.0000|
|City of Toronto||2.1788|
|City of Toronto||1.0000|
|City of Toronto||2.7000|
|City of Toronto||2.6838|
|City of Toronto||1.9236|
|City of Toronto||0.2500|
|City of Toronto||0.2500|
|City of Toronto||N/A|
What tax mitigation measures exist for businesses?
York Region uses "capping" to limit the amount that business property taxes can increase and "clawback" business property taxes to compensate for the capped business properties.
Capping and Clawback Mechanism for Business Classes
In 2017, capping and clawback is applied to industrial and commercial properties in York Region with the following mechanisms being used:
- Increase the maximum annual increase for capped properties from current level of 5 per cent of the previous year's current value assessment level taxes to a new maximum of 10 per cent.
- Properties for which tax increases are capped (protected) but are within $500 of their full current value assessment taxes will be moved to the current value assessment tax level within the current taxation year (raised from a $250 threshold)
- Properties for which tax decreases are clawed back (retained) but are within $500 of their full current value assessment taxes will be moved to the current value assessment tax level within the current taxation year (raised from a $250 threshold)
- Eligible new construction/new-to-class properties within the meaning of subsection 331(20) of the Municipal Act, 2001, are taxed at 100 per cent of their full current value assessment tax value
- Properties that were at their full current value level taxes in the prior taxation year remain at their full current value level taxes in the current taxation year
- Properties that were changing from being capped (protected) to clawed back (retained) from the prior taxation year, are instead excluded from the capping calculation and would be set equal to their uncapped full current value taxes
- Properties that were changing from being clawed back (retained) to capped (protected) from the prior taxation year, are instead excluded from the capping calculation and would be set equal to their uncapped full current value taxes
- Municipalities may exclude vacant properties from the phase-out eligibility criteria
- Municipalities may limit capping protection only to reassessment-related changes prior to 2017
- For property classes with no capped properties under 50 per cent of current value assessment level taxes, properties within that class will be phased out from the capping program over four years
- In 2017, the Region began phasing out capping for industrial class properties. All properties will have exited the capping program by 2020.
- In 2018, the Region began phasing out capping for commerical class properties. All properties will have exited the capping program by 2021.
Recovery of Lost Revenue from Capped Commercial and Industrial Properties
In order to recover the property tax revenue lost by capping, legislation permits York Region to recover all or part of the cost of the ‘cap’ by one of or any combination of the following:
- Limiting property tax decreases by ‘clawing back’ the decreases within the class
- Utilizing non-tax revenues
- A general tax rate increase across all property classes
York Region Council approved the use of limiting property tax decrease by “clawing back” the decreases within the class as a means to recover the lost revenue from the capped business properties.
Table 3: Property tax clawback percentages since 2010.
*All multi-residential properties have been at their current value assessment level taxes since 2010, so there is no need for clawing back.
What rebates, reductions and relief programs are available to residents?
There are various tax rebates, tax reductions and relief programs that property owners in York Region can access.
Tax Rebate for Vacant Properties
The program is no longer available, effective 2018 taxation year.
Tax Discount for Farmland Awaiting Development
As a matter of public policy, farmland in Ontario has traditionally received better property tax treatment as a working farm. By providing tax discounts for farmland awaiting development, municipalities are providing incentives to keep this land under cultivation during the development period.
York Region maintained its policy to provide discounts for farmland awaiting development during phase I (registered plan of subdivision) at 75 per cent which is in keeping with the lower tax rate afforded to working farms. Phase II (building permit issued) discounts will remain at zero per cent since farming ends at this stage.
Tax Relief for Senior Citizens and Low-Income Disabled Persons
Seniors over 65 years old, low-income seniors between 55 and 64 years old and low-income citizens with a disability who own a principal residence in York Region, may be eligible for an annual deferral of all or part of your property tax increases.
To be eligible for a full deferral of the tax increase, you must be:
- Disabled, as defined by the Ontario Disability Support Program Act, 1997, receiving benefits under the Ontario Disability Support Program, (ODSP) or the Guaranteed Annual Income System for the disabled (GAINS) and be eligible to claim a disability amount as defined in the Income Tax Act; or
- A senior over 65 years old
To be eligible for a partial deferral, you must:
- Be 55 – 64 years old and receiving a property tax increase of more than $100 in a reassessment year
- Have an annual gross household income from all sources of $23,000 or less if single, or $40,000 or less in the case of a family of two or more persons
- Be the owner of the property on January 1 of the taxation year for which the deferral has been requested
All deferred taxes must be repaid in full upon the sale or transfer of title to the property. Repayment is not required if the transfer of the property is being made to a spouse.
How to Apply
To determine your eligibility to receive a property tax deferral, please contact the tax office of your local municipality. Applications must be received no later than September 30, of the taxation year for which you are requesting a property tax deferral.
Exemption for Portion of Homes Built for People with Disabilities
The Province has announced a property tax exemption for a portion of the assessed value of all new homes built to accommodate seniors and people with disabilities who would otherwise require care in an institution.
In the past, only the value of alterations or additions made to existing homes to accommodate people with disabilities was exempted from property taxation. New homes with custom-built features did not qualify for any exemption. Ten per cent of the assessed value of new homes built to accommodate seniors or persons with disabilities will also be exempt from property taxation.
Tax Relief for Registered Charities and Similar Organizations
Current legislation requires Council to rebate a minimum of 40 per cent of total property taxes payable by a charity. Registered charities are eligible for a property tax rebate equal to 40 per cent of the taxes payable for space that is rented or leased in a commercial or industrial class of property.
In order to be eligible for this program, the following criteria must be met:
- You must be a registered charity as defined by subsection 248(1) of the Income Tax Act and can provide a registered charity number issued by Revenue Canada
- You must provide documentation from the landlord specifying the amount of property taxes payable for the rented or leased space occupied
Organizations "Similar" to a Charity
Rebates of between zero per cent and 100 per cent to organizations similar to a charity are no longer available. In 2002, Council phased-out the tax rebates for organizations "similar" to registered charities. A grandfathering clause extended tax rebates to those "similar" organizations that received rebates in 2000 for a period of three years or until such time as those organizations vacate the subject property.
How to Apply
To determine your eligibility to receive a charitable rebate, please contact the tax office of your local municipality. Applications must be received no later than February 28, of the taxation year following the year for which you are requesting a charitable rebate.
Rebate for Royal Canadian Legions, Veterans Associations and the Ontario Provincial Command
For the 2002 taxation year and beyond, Regional Council approved a policy that will result in a 100 per cent rebate of taxes payable to the Royal Canadian Legions, Veterans Associations and the Ontario Provincial Command.
Effective January 1, 2019, Royal Canadian Legions are exempt from property taxation. As such, a 100 per cent rebate of taxes payable will only apply to Veterans Associations and the Ontario Provincial Command.
Tax Relief for People in Hardship
The Municipal Act, 2001 provides local municipalities with the option of providing tax reductions or refunds to property owners in the residential and farm class if the municipality deems the taxes to be "unduly burdensome". Local municipalities are required to determine the amount of relief and the eligibility criteria.
The education portion of the tax bill will be cost shared by the Province. York Region has the option of sharing the cost with respect to the upper-tier portion of the tax bill.
Please contact your local municipality for eligibility criteria.
Relief for Brownfields
The Brownfield Statue Act is a tool by which Ontario's municipalities can encourage intensification and infill development through the redevelopment of vacant, abandoned and/or idled industrial and commercial sites within the existing urban boundary.
Through the Brownfield Act, amendments to several Acts provide tools that can be used by both the private and public sectors in the development of brownfields. Municipalities now have the authority to grant property tax incentives/postponements to owners and developers who are willing to undertake the redevelopment process.
The tax assistance can be offered during the rehabilitation period and also during the development period. In addition, the education portion of property taxes can be frozen or cancelled during the rehabilitation and development period provided approval is received from the Province.
Once these properties have been rehabilitated there will be environmental and financial benefits. The money granted or loaned to a developer will be recovered through a future increase in property tax assessment. The limit of the financial assistance is to be no greater than the total cost of rehabilitating the site.
Please contact your local municipality for eligibility criteria.
Reductions for Heritage Properties
The tax reduction for the Heritage Property Program, pursuant to section 365.2 of the Municipal Act, 2001 provides local municipalities with a tool to provide tax reductions or refunds with respect to an "eligible" heritage property.
In 2004, Markham and Newmarket adopted programs which provide eligible heritage properties a reduction of 30 and 40 per cent respectively. The reduction programs apply to both local municipal and education portions, effective January 1, 2004. For further details, please contact the Town of Newmarket or City of Markham municipal offices.
Area Municipal Treasurers
Please contact your local municipality, for all your property tax administrative matters.
Town of Aurora
Rachel Wainwright-van Kessel, Treasurer/Director of Financial Services
Town of East Gwillimbury
Warren Marshall, General Manager, Finance/Treasurer
Town of Georgina
Rob Wheater, Treasurer
Township of King
Peggy Tollett, Director of Finance/Treasurer
City of Markham
Joel Lustig, Treasurer
Town of Newmarket
Mike Mayes, Director of Finance/Treasurer
Town of Richmond Hill
David Dexter, Director of Financial Services/Treasurer
City of Vaughan
Michael Coroneos, Chief Financial Officer and City Treasurer
Town of Whitchurch-Stouffville
Jeremy Harness, Director of Finance/Treasurer