How is Property in Ontario Assessed?
What Happens Next
If this is not an Assessment Update year, why did I receive a Property Assessment Notice from MPAC?
Will my municipality/local taxing authority be notified of these changes to my property?
I recently purchased a newly-built home. When will my new home be assessed?
How is Property in Ontario Assessed?
To establish your property’s assessed value, MPAC analyzes property sales in your community and applies the Current Value Assessment method, which is used by most assessment jurisdictions in North America.
In addition to sales, we look at the key features of every property and may consider up to 200 factors when assessing the value of a residential property.
Five major factors account for 85% of the value:
- location;
- lot dimensions;
- living area;
- age of the property, adjusted for any major renovations or additions; and
- quality of construction.
Some other features that may affect value include:
- secondary structures such as garages, boathouses and pools;
- basement area (finished and unfinished);
- type of heating;
- air conditioning;
- number of bathrooms; and
- fireplaces.
Site features can also increase or decrease the assessed value of your property. These include:
- traffic patterns;
- being situated on a corner lot; and
- proximity to a golf course, hydro corridor, railway or green space.
Property Information
When assessing the value of a property, MPAC gathers information from a number of sources, including:
- land title documents;
- building permits; and
- on-site property inspections and communication with builders and property owners.
Top ^ What Happens Next?
MPAC sends assessment information to the Municipal Clerk’s office in the form of an “assessment roll.” Then, municipalities set municipal tax rates, based on their local budgets. The municipalities apply these tax rates to the assessed values of the properties to determine the amount of property taxes each property owner must pay.
For more information – Newly Built Homes Brochure
Top ^ If this is not an Assessment Update year, why did I receive a Property Assessment Notice from MPAC?
MPAC is legislatively responsible for updating assessments when changes are made to properties, even in a year when a province-wide assessment update is not taking place.
You may receive a Notice in the fall to advise you of changes for the upcoming taxation year for any of the following reasons:
- change to property ownership, legal description, or school support;
- change to the property’s assessment resulting from a Request for Reconsideration or Assessment Review Board decision;
- property value increase/decrease reflecting a change to the property, for example a new structure, addition or removal of an old structure; or
- change in the classification or tax liability of the property.
The notice shows the assessed value and classification of your property based on the legislated valuation date of January 1, 2008, which is in place for the 2009 – 2012 tax years.
The phased-in assessed values for your property are also listed on your Notice.
Amended Property Assessment Notice
After the mailing of Property Assessment Notices in the fall, you may receive an Amended Property Assessment Notice as a result of a change made to your property that was not included on the previous Notice. This Notice will reflect amendment(s) in the assessed value, classification or tax status that will be shown on the assessment roll for the upcoming taxation year.
Property Assessment Change Notice
You will receive a Property Assessment Change Notice from MPAC when certain changes are made to your property that qualify under assessment legislation to be added to your existing assessment for the current or two preceding taxation years. MPAC is required to issue such a Notice when:
- your property value increases as a result of a new structure, addition or renovation; or
- the classification of your property changes; or
- your property, or a portion of it, was previously omitted from the assessment roll; or
- the property becomes taxable.
Learn more -
Guide to Property Assessment
Post Roll Amended Notice
At any time during a taxation year, if there was a factual error(s) in the assessed value, classification or tax status of your property, MPAC has the authority to correct the error by issuing a Post Roll Amended Notice. This notice corrects the assessment(s) provided in a previously issued Property Assessment Notice
Amended Property Assessment Change Notice
At any time, during the taxation year, if there was a factual error(s) in the assessed value, classification or tax status shown on a previously issued Property Assessment Change Notice, MPAC has the authority to correct the error by issuing an Amended Property Assessment Change Notice.
Advisory Notice of Adjustment
Where there has been a change to the assessed value that affects the phase-in values for the current or preceding taxation years and there is no other method to report the revised phase-in values, an Advisory Notice of Adjustment is sent to the property taxpayer. An Advisory Notice of Adjustment is a notification only. These notices are typically used to advise of the change in the phased-in assessment following a decision of the Assessment Review Board.
Learn more -
Visit 2011 Property Assessment Notices
How we Assess Properties
Top ^ Will my municipality/local taxing authority be notified of these changes to my property?
Yes, MPAC notifies your municipality or local taxing authority of changes made to your assessed value, classification or tax status of your property or portion of it. The changes are subject to taxation by your municipality or local taxing authority.
Top ^ I recently purchased a newly-built home. When will my new home be assessed?
MPAC aims to assess all new residential buildings and additions within six months of occupation. However, if your new home or addition is not assessed during the year that it was completed and occupied, you will still be responsible for the taxes from the date you occupied the property.
The Assessment Act allows MPAC to assess any new house or addition that has been omitted from the assessment roll for the current and any part or all of the two previous years.
Learn more -
Newly-Built Home brochure
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