In Canada, municipal governments raise the money needed for provided local services to residents from property taxes. It is usually collected from owners who pay this property tax directly to the local municipal government. The amount of property tax that a homeowner pays depends on where the person lives and the value of the property. Different types of properties attract different tax rates. For example, residential property tax is lower than commercial property tax in Canada.
If you rent a home in Canada, you will not need to pay property taxes. The onus of paying a property tax to the local Canadian municipal governments rests solely on the shoulders of homeowners and landlords. Property taxes may also differ in the different provinces and municipalities. Some provinces also offer rebate schemes and deferment options to help seniors, low-income homeowners and disabled people.
When identifying a property tax, it is based on a valuation carried out by a central agency of a particular province. In Canada, all provinces have their individual assessment boards for evaluating property taxes. Calgary, Ottawa, British Columbia, Montreal, Vancouver and Toronto – all have property taxes that have been determined by their local assessment boards. This valuation will then be provided to the local relevant municipality, who will apply an applicable tax rate to the property. The property taxes rates in different provinces also vary. Property tax rates are usually assessed on an annual basis, and the tax itself will vary according to the type of property, whether it is residential, commercial or industrial.
A homeowner will pay the tax directly to the local municipal authority and is determined as an annual fee. In order to spread out the tax burden, many homeowners prefer to make monthly payments through the year. In case of late payments, the municipality may apply certain penalties. Houses with extended periods of unpaid property tax may be auctioned off, after the stipulated timeframe.
In Calgary, the property tax is also calculated according to the property’s assessed value, as determined by the property assessment notice. The city of Calgary property taxes are determined on an annual basis, after the relevant local authorities have assessed the property’s market value.
In British Columbia, you also pay a tax every year for each property you own or lease. If you own or lease a manufactured home or property in BC, you will also need to pay your BC property taxes on an annual basis. The money raised from these property taxes goes towards local programs and services, such as police and fire protection, road construction and maintenance, garbage services and recreational areas. Similar to the other Canadian provinces, the city of Ottawa property taxes are calculated on an annual basis and are based on the assessed value of the property.
You could also look up some property tax calculators online to determine the value of your property tax, depending on which province you hail from. This is similar to a mortgage calculator. If you are looking to get more details about getting a mortgage in Canada, you can refer to a Canadian mortgage calculator.
If you need any further information regarding property taxes in your province, you should log on to www.mymortgagebroker.com and choose from the various options that have been made available on the website. If you need any further help with the process or have any additional questions, you can contact their customer service representatives between Monday and Friday at 403-870-2669.