Property taxes will be required for all residential and commercial properties in any village, town or city. These taxes are used to increase income for local services by municipal governments. These taxes are collected from property owners and go directly to local governments for maintenance of health and livability.
These taxes pay for police, firefighters, emergency services, recreation and community centers, libraries and parks, as well as services for the disabled. The property or land taxes vary from one province to the next, as well as between municipalities. This article provides a general overview of residential taxes. However, it is not intended to provide specific information about your area.
Calculating property taxes
It is important to understand your property taxes if you are looking for a home. These taxes can sometimes be prohibitive, even if your mortgage payments are affordable. This is why you should always include this tax into your annual budget. While tax rates are generally the same in a municipality; however, the value of your home will impact your tax rate.
Property taxes are generally calculated by a central agency within each province and are based upon the property valuations in your locality. The tax rates will be set annually and may vary depending on whether the property is residential, commercial, or industrials.