Toronto City Council debates the city's next budget. The two-day debate concluded Jan. 30. The approved budget includes a 2.23 per cent residential property tax increase.

Property taxes on way up for some, down for others

Homeowners facing 2.23% hike, those in muti-residential buildings get 0.79% cut

Recent residential tax increases in Toronto

2011   0%
2012   2.5%
2013   2%
2014   2.23%

After two days of budget talks at City Hall, council approved a budget that includes a 2.23 per cent residential tax increase.

But the 2014 capital and operating budgets, approved Jan. 30, also include a tax cut for many residents.

“Forty to 50 per cent of our residents live in multi-residential buildings,” Deputy City Manager Roberto Rossini said. “They will actually get a tax decrease of 0.79 [per cent].”

Property tax breakdown

City of Toronto
1.73 — % hike to cover increased budget expenditures; translates to $31.67 increase to average homeowner’s tax bill

0.5 — % hike to pay for Scarborough subway; translates to $12.70 increase to average homeowner’s tax bill

+

Ontario
0.48 — % hike mandated under current value assessment system; translates to $11.93 increase to average homeowner’s tax bill

=

Total combined
2.71 — % combined hike; translates to $56.30 increase to average homeowner’s tax bill

The residential tax increase is designed to help balance high tax rates on apartments and industrial properties, which pay 2.5 to 3 times what residential property owners pay, Rossini said.

The 2.23 per cent residential increase translates to an additional $56.30 from average homeowners when added to the 0.48 per cent increase in the current value assessment, which is a provincial tax policy designed to bring consistency to property assessments across Ontario.

Even with the tax increase, Toronto residents pay significantly less than other cities in the GTA, City Manager Joe Pennachetti said.

Nonetheless, the budget and the 2.23 per cent tax hike it contained met resistance from Mayor Rob Ford and Coun. Giorgio Mammoliti before being approved 32 to 13 by council.

The hike includes a 1.73 per cent budget levy as well as a 0.5 per cent levy to pay for the Scarborough subway.