Toronto city council has approved the highest property tax increase for homeowners since the city’s six boroughs amalgamated in 1998.
The 5.5% residential tax hike will amount to an additional $183 for the average Toronto household, says the City. However, when combined with a previously approved 1.5% hike to the city building levy, which helps fund transit and affordable housing, homeowners will see their bills increase by 7% in 2023. This equates to an extra $233, not $183, this year.
These dollar amounts are based on the average home in Toronto with an assessed value of approximately $695,000. Homes with higher assessed values will pay more.
This year’s residential tax hike is almost double that of 2022, when property taxes increased 2.9%. In 2021, property taxes increased by 0.7%.
Higher property taxes aren’t the only elevated costs Toronto residents will face. Water and garbage rates are going up, too. City council has green-lighted a 3% tax increase to these services. The average household that consumes 230 cubic metres of water a year will pay an extra $29 or more, while garbage fees will rise between $8 and $16, depending on the size of the bin.