Property Owners

Newly Built Homes, Additions & Renovations - Questions & Answers

How is Property in Ontario Assessed?
What Happens Next
I recently purchased a newly-built home. When will my new home be assessed?
Will my municipality/local taxing authority be notified of these changes to my property?
What is a PACN?

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.

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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

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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.

Omitted or supplementary property assessments

Sample calculation for a newly assessed home
Assessed value of new home: $200,000
Assumed local tax rate: 0.01200 (1.2%)
Total Annual Taxes on new home: $2,400
Pro-rated Property taxes from August 1 to December 31 5 months/12 months = 0.4166
Supplementary tax bill for the new home only is calculated as follows: 0.4166 X $2,400 = $999.84

Please note that the tax rate used in this example is for demonstration purposes only. Contact your local municipality’s tax department to find out the tax rate that applies to your property.

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.

Learn more
What is a Property Assessment Change Notice

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