Toronto homeowners are paying 2.2% more in property tax in 2026. According to the City of Toronto, the combined residential increase approved with the 2026 budget (including the City Building Fund levy) works out to about $91.53 a year, or $7.63 a month, for a home with the average assessed value of $692,140. Below is what that means for your bill, when payments are due and how to avoid penalties.
Your bill is based on two things: the assessed value of your property set by the Municipal Property Assessment Corporation (MPAC) and the tax rate approved by City Council for your property class (residential, multi-residential, commercial and so on). The residential tax rate is made up of a municipal portion, which pays for City services such as the TTC, police, fire, parks and libraries, and an education portion set by the Province of Ontario.
Because the rate is applied to assessed value, two homes on the same street can have very different bills. The 2.2% figure is the change for a typical home; your own increase depends on your assessment. If you think MPAC’s value is wrong, you can ask MPAC for a Request for Reconsideration within the deadline shown on your assessment notice.
Toronto issues two bills each year:
If you have not received a bill about a week after the City’s mailing date, contact 311. Not receiving a bill does not cancel the payment obligation.
If you pay without a pre-authorized plan, the City of Toronto lists six instalments:
| Bill | Due dates 2026 |
|---|---|
| Interim | Monday, March 2 · Wednesday, April 1 · Friday, May 1 |
| Final | Thursday, July 2 · Tuesday, August 4 · Tuesday, September 1 |
The City also offers automatic withdrawals from your bank account:
The 11-instalment plan spreads the cost most evenly and is popular with households budgeting monthly. If you change banks, update your pre-authorized information with the City before the next withdrawal.
The City of Toronto accepts property tax payments:
Online banking payments can take a few business days to reach the City. Payments must arrive by the due date to avoid penalties, interest or administrative fees, so do not wait until the last day. Paperless eBilling is also available for property tax and utility bills.
If your mortgage lender collects property tax with your mortgage payment, the lender pays the City directly. Check with your lender if you are unsure, especially after renewing or switching lenders.
Every residential property owner in Toronto has to declare the occupancy status of their property each year, even if they live in it. For 2026, the City set the declaration deadline at Thursday, April 30. You can declare online, by calling 311 or in person at a civic centre. Missing the declaration can lead to the property being treated as vacant and charged the tax, so it is worth confirming you completed it.
The City offers property tax deferral and cancellation programs, plus water and solid waste rebates, for eligible low-income seniors and low-income people with disabilities. For 2026, applications were due by Friday, October 31. Eligibility rules (income limits, assessed value limits, ownership period) are set by the City; check the City of Toronto’s property tax relief pages or call 311 before the next deadline.
If you bought a home this year, the seller and buyer usually adjust property taxes on the closing statement, but the City bill may still arrive in the previous owner’s name. Make sure ownership has been updated and that you know who is paying the next instalment. First-time buyers should also budget for the land transfer taxes explained in our Toronto land transfer tax guide and use our mortgage payment calculator to see total monthly housing costs.
Property tax is only one line in a household budget. For a fuller look at housing, transit and food costs in the city, see our cost of living in Toronto 2026 breakdown. The 2026 budget was adopted under Mayor Olivia Chow, who was re-elected in October 2026; the 2027 budget process will set next year’s rate.
The interim bill is based on the previous year’s taxes. The 2026 increase appears on the final bill issued in May.
The City charges penalties, interest or administrative fees on late payments. The exact charges are listed on the City of Toronto’s property tax pages and on your bill.
You can enrol in a pre-authorized plan, but the start date depends on when the City processes your application. Contact 311 to confirm which instalments will be withdrawn.
Not directly. The landlord pays it, and it is one of the costs that can factor into rent. Rent increases are capped separately by Ontario’s rent increase guideline.
This is general information, not financial or legal advice. Confirm amounts and deadlines on your own tax bill or with the City of Toronto.
Last updated: November 2026
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