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B.C. cities boast property tax charges beneath 0.5%, considerably decrease than different main Canadian cities
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Whereas common dwelling costs proceed to rise all through Canada, a latest examine by actual property itemizing web site Zoocasa.com discovered one other value householders face varies broadly throughout the nation and will influence the general monetary equations of shopping for a house.
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The Zoocasa report analyzed municipal property tax charges in 25 Canadian cities, shedding gentle on the place it may be attainable to realize some financial savings that aren’t essentially mirrored in dwelling costs.
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The examine, which thought-about the property tax charges for 2023, targeted on the quantity of property taxes a resident would pay on a house with common costs of $500,000 and $1,000,000.
“Residential property tax charges are based mostly on an evaluation of the house’s worth and the residential property tax price set by the native municipality,” the report mentioned. “These trying to purchase a house in varied cities want to pay attention to how the native tax price will influence their total housing affordability.”
Regardless of hovering costs, the cities of Vancouver, Abbotsford, Kelowna and Victoria — all in British Columbia — boasted property tax charges beneath 0.5 per cent, considerably decrease than different main Canadian cities. As an example, Vancouver householders, regardless of going through a median dwelling worth of $1,188,000, would solely have to pay $3,303 in property taxes yearly. In distinction, residents of Toronto would face a a lot greater property tax invoice of $7,969 for a equally priced dwelling.
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Montreal’s property tax price of 0.5305 per cent additionally locations it within the prime 5. However with a median dwelling worth of $519,200, Montrealers would pay a mere $2,754 in property taxes — the bottom quantity on the record for an average-priced dwelling. St. John’s, N.L., adopted carefully, with householders paying $2,997 in property taxes on a $280,400 dwelling.
Winnipeg emerged as an outlier by way of property tax charges. Though its common dwelling worth was lower than half of these in Vancouver and Toronto, the property tax price of two.64 per cent far exceeded that of different cities analyzed. Owners in Winnipeg would pay a staggering $9,111 in taxes for a house valued at $344,600, town’s common worth. This quantity is greater than double what householders in cities similar to Edmonton, Quebec Metropolis, Calgary, Victoria and Kelowna would pay for a house on the common worth.
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Different cities with notably excessive property tax charges included Sault Ste. Marie, Ont., the place householders would pay $4,759 on an average-priced dwelling of $276,600, owing to a property tax price of 1.720655 per cent. Charlottetown and Saint John, N.B., adopted with charges of 1.67 per cent and 1.62 per cent, respectively. Nonetheless, as a result of common dwelling costs beneath $350,000, residents in there can anticipate to pay lower than these in most Ontario cities.
Surprisingly, Guelph, Ont., topped the record for the best property tax invoice on a house on the common worth. With a property tax price of 1.23 per cent and a median dwelling worth of $824,500, householders in Guelph would pay $10,134 in property taxes yearly. Burlington adopted carefully, with a property tax price of 0.86 and a median dwelling worth of $1,086,400, leading to householders paying $9,359 in property taxes.
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Patti Cosgarea, public relations and content material advertising supervisor at Zoocasa.com, urged potential homebuyers to train warning and totally assess the implications of those bills on total housing affordability.
“Many individuals consider property taxes as an afterthought,” Cosgarea mentioned in an interview. “Nonetheless, 30 years down the road, if any individual has paid off their mortgage, they’re nonetheless going to be paying property taxes so long as they personal it. So it is a vital issue to have in mind when taking a look at property.”
Decrease property taxes could also be attractive, however it’s crucial to think about the broader implications related to any transfer.
Vancouver, for instance, has witnessed an prolonged interval of property-tax reductions to compensate partly for quickly escalating worth will increase, Cosgarea mentioned. The coverage has had the unintended impact of creating the area extra enticing to abroad traders.
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“Property taxes have lately gone down in Vancouver prior to now couple of years,” Cosgarea mentioned. “Nonetheless, this has introduced a ton of traders to Vancouver and surrounding markets, which has actually tightened competitors and made circumstances much more tough (for consumers). It’s tough to say whether or not greater property taxes are a great or unhealthy factor. It actually relies upon available on the market and what the circumstances are like.”
• E mail: shcampbell@postmedia.com
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