Toronto Homeowners Hit with Hefty 9.5% Property Tax Hike

 

Under a mix of scrutiny and support, Toronto City Council just approved the long anticipated 9.5% residential property tax hike - the highest increase the city has seen since 1998. The increase comes as no surprise for many, as the city attempts to close its $1.8 billion budget deficit. With the increase, Toronto home owners can expect to pay an additional $338 in property taxes this year.

 

Toronto's budget staff originally proposed a 10.5% increase last month, but Mayor Olivia Chow and council chose to soften the blow after hearing perfuse concerns raised by home owners across Toronto. The city will have to dip into their reserve funds in order to make up for the one percent discrepancy. City council voted 18 to 8 in favour of the increase, along with the rest of Chow's proposed budget.

 

Council has also passed a 2.95% property tax increase for multi-residential properties, 4% increase for commercial properties, and 8% increase for industrial properties. The budget includes a $126 million investment into affordable housing and shelters. These property tax hikes are seen as necessary for most city councilors and experts, as Toronto falls into deeper disrepair and debt. However, a handful of councilors and many Torontonians believe that such a large increase is unwarranted considering the current economic landscape. Some believe that the city is trying to generate more revenue from the wrong places.

 

Even with the 9.5% increase, Toronto still has among the lowest property taxes compared to other cities in Ontario. Toronto, Vaughan, Markham, Richmond Hill, and Oakville have the GTA's lowest property taxes, while Brampton, Peterborough, Barrie, Hamilton, and Guelph have some of the highest property taxes.