Newly Built Homes

Shortly after you move into your new home, you will receive a Property Assessment Change Notice. MPAC issues this Notice when there has been a change to your assessment during the property tax year. In your case, a new house was built.

How your property is assessed

Our assessors are trained experts in the field of valuation and apply appraisal industry standards and best practices. We look at sales and compare your property to similar properties that have sold in your area. This approach is called Current Value Assessment and is used by most assessment jurisdictions in North America. For newly built homes, sales of properties on the resale market are taken into consideration.

While over 200 factors are considered when assessing a property, these five factors account for 85% of your home’s value:

5 factors image. Location. Living area. Age of the property. Lot dimensions. Quality of construction.

We look at land title documents as well as building permits and often conduct on-site property inspections to ensure we have the most up-to-date and accurate information on your property.

The relationship between your assessment and your taxes

MPAC provides your property’s assessment information to your municipality/local taxing authority. Your municipality mails you a supplementary tax bill for your new home. This bill covers the property tax you owe – from the date the property is registered in your name, to the end of the current tax year. You may also receive a tax bill that represents taxes owing on the land.

The Assessment Act allows MPAC to assess any new house that has been omitted from the Assessment Roll for the current and any part or all of the two previous years.

Sample tax calculation:

An example of a calculation of the property taxes owing on a new home as a result of the supplementary assessment is provided below:

Assessed value of new home

$200,000

Assumed local tax rate

0.01200 (1.2%)

Total annual taxes on new home

 $2,400

The home was registered on August 1, so the property taxes will be prorated from August 1 to December 31 (5 months)

5 months/12 months = 0.4166

Calculation for the supplementary tax bill for the new home

0.4166 X $2,400 = $999.84

Supplementary tax bill $999.84
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.

Learn more about the relationship between assessment and taxation:

Learn more about how taxes are calculated video

Questions about your assessment?

Visit aboutmyproperty.ca to learn more about how your property was assessed, see the information we have on file and compare it to others in your neighbourhood. Look for your Roll Number and Access Key on your Property Assessment Notice to register.

If you still disagree with your property’s assessed value or classification, we will review your assessment free of charge through a Request for Reconsideration (RfR). Your deadline to file an RfR with MPAC is included on your Property Assessment Notice. Learn more about your assessment.

Classification

In addition to valuing properties, we also classify every property in Ontario. There are seven major property classes: residential, multi-residential, commercial, industrial, pipeline, farm and managed forests.

Some properties may belong to more than one class. For example, if a building has an apartment on the top floor and a retail store on the main floor it would fall into two classes - residential for the apartment and commercial for the store.

Learn more:

 

Note: The applicable law prevails to the extent there is any conflict between this information and the current law. This information is not intended to provide legal advice and should not be relied upon as such.