There are so many advantages to owning a home. When you start contacting real estate agents in search of your first home it can be one of the most exciting times of your life. But you need to know what you're in for when it comes to responsibility before diving in with both feet. There are many things you’ll need to take care of when owning your own home that weren’ta concern when you were renting. One of those is to pay annual property taxes. Here’s a little about what these costs entail and what you’ll be paying for your newly purchased property.
First off, some people might wonder if owning a condo opposed to a standard home in Toronto means that you still have to pay property taxes. While your condo fees might pay for you to have access to a gym or party room, they unfortunately don’teliminate this expense. Anyone who owns a property, whether that be a unit in a condominium or a commercial building is required to pay annual taxes to the city.
Property Tax In Ontario
Last year, the residential tax rate in Toronto meant that you’d pay about 0.68% of the total cost of your home to property taxes. About two-thirds of this money goes to city taxes and the rest goes to education taxes. If you're wondering about the exact amount that you’d pay for your current property or are looking at Toronto homes on the market and want an estimate of how much taxes fall within your price bracket, check out thistax calculator , or you can search for similar online calculators based on a location you're interested in. You’ll receive an exact number and a breakdown of just where that money is going.
You’ll discover that the breakdown of how your tax dollars are being spent is based on an average signed home worth a little over $400,000 where the homeowners are paying $2400 annually in taxes. Police services and public transit get the largest chunk of the funds. This is followed by debt charges, fire services, and Toronto employment services. If you're buying a home for the first time it might be a good idea to crunch some numbers using this tool to see how your money will be allocated to city services.
The local government determines property tax amounts. So, it's important to take property tax into account and ask guidance from your realtor and trusted sources. If you have any questions regarding your home property taxes, contact us here.