These GTA Cities Have The Highest Property Tax Rates
Buying and maintaining a property is a milestone achievement for most of us. It not only requires a great degree of planning and responsibility, it also requires excellent financial planning to buy and maintain home ownership. As if escrow and mortgage payments were not enough, property tax is yet another debilitating cost which makes home ownership a distant dream for many.
Property tax is levied annually by the municipality and its value is usually calculated on the basis of the home value. At the time of purchasing a property, people often overlook the cost of property tax. But in long term, it turns out to be a substantial carrying cost, especially if you have to consider your mortgage payments along with tax payment.
Here is a list of GTA cities with the highest property tax rates for all the new and prospective home owners in GTA –
1. Property tax rates above 1%: While average property rate in these cities varies between $480,000 to $720,000, making property purchase practical; high property tax rates makes property maintenance a costly affair in these cities. Orangeville and Oshawa have a property tax rate greater than 1.4%. Closely following are the cities of Brock, Clarington, Whitby, Scugog, Pickering, Ajax and Georgina; with property tax rates in the range of 1.1% to 1.3%. Cities of Innisfil, Brampton, Uxbridge and Bradford west are no better.
As an average home owner has to annually pay $6000 to $8000 for property tax, it becomes a huge financial burden to maintain property in these areas of GTA.
2. Property tax rates between 0.8% – 1%: The area with notoriously high property rates and property tax rates in this bracket is King city, where annual property tax can exceed $12,000. Other areas with annual property tax ranging between $4800 and $7500 are Burlington, Aurora, Mississauga, Halton Hills, E Gwillimbury, Caledon, New Market, New Tecumseth and Barrie. Although clearly more affordable than the higher property tax rate neighborhoods in GTA, these cities are still expensive in terms of home maintenance for an average home owner.
3. Property tax rates between 0.6% – 0.8%: Toronto East, Toronto West, Toronto Central, Markham, Milton, Richmond Hill, Vaughn, Essa, Oakville and Whitchurch Stouffville are some of the areas which have comparatively lower property tax rates in GTA. An average home owner has to pay annual property tax between $3800 – $7500, making these cities affordable locations for purchasing and maintaining property in GTA.
Given the above property tax rates in GTA, a prudent home buyer would account for this substantial cost at the time of selecting home location, rather than just considering the property value. At Toronto Condo Only, we are passionate about new land developments and since 2007, we have helped clients get the best deals and the properties. Monty Malhi has and continues to build formidable relationships with reputable developers and major industry players to give clients first access to the most desirable and sought after projects in and around the GTA. First access to securing units at most projects can amount to considerable price savings of over $20,000 – $50,000. Clients trust our industry knowledge of the real estate investment market throughout Greater Toronto, which is the foundation of our success to buy low and sell high. With our broad vision and innate ability to understand real estate properties, including pre-construction low-rise and high-rise condos, resale homes and commercial properties, we have achieved continued success for our clients and ourselves.