Toronto’s Tax Tribulations

Property owners in the city of Toronto may be walloped with another tax hit, as the latest budget unveils a proposal to increase property taxes by as much as 3.75%.

Mayor David Miller insists the hike is needed to balance the $8.2 million budget shortfall of $8 million, but many are pointing out the increase is not in keeping with his campaign promise to keep taxes in line with inflation.

Homeowners may be in for a severe shock when they receive their new tax bills later this year, as the 3-year provincial freeze on assessments came to an end last month. Property values have appreciated substantially across the province, particularly in the GTA, and the higher tax rate may see some assessments increase by as much as 30 per cent.

Homeowners across the GTA are already feeling tapped out as the municipal transfer tax takes effect today, making Toronto the only municipality in Canada to be taxed at both the municipal and provincial level.

The city is offering property tax relief and in some cases cancellation for low-income seniors and disabled persons.