2023 Canadian Property Tax Rate Benchmark Report
Altus Group’s annual analysis of property tax rates and commercial-to-residential property tax ratios across Canada.
Our 2023 analysis highlights the challenges and impacts of municipal tax policy on the operating costs for commercial real estate in major municipalities
Our region-by-region analysis of property tax assessment and rates for major cities aims to provide commercial taxpayers with a deeper understanding of the factors impacting taxation, and encourage a healthy and competitive business environment for the commercial real estate sector.
What’s inside
2023 commercial-to-residential tax ratios and changes
2003 to 2023 commercial-to-residential ratio analysis
2023 regional property tax updates
2023 commercial-to-residential tax ratios of major urban centres across Canada
Highlights from our annual analysis of property tax rates and commercial-to-residential property tax ratios across Canada
Key finding #1
Market conditions are putting negative pressure on commercial property values and, at the same time, property owners across Canada continue to battle ever-increasing operating expenses and the rising cost of debt.
Key findings #2
Municipalities are tasked with the challenge of drafting tax policies which effectively address the principles of fairness, certainty and transparency for both residential and commercial property owners.
Key finding #3
This year’s report shines a spotlight on the factors currently impacting property taxes in each region, including values of real estate in key market sectors, assessment updates, and provincial and municipal tax policy.
Key finding #4
The Halifax Regional Municipality (HRM) began increasing taxes on the highest-value properties in designated commercial and industrial nodes this year – a controversial policy which has notably increased inequity and complexity of commercial property taxation.
Key finding #5
In Ontario, 2023 property taxes are based on assessments as of January 1, 2016, and the province has not yet specified a timeline for an update. Unfortunately, this continued delay in updating assessments has resulted in some properties paying up to 50% more property tax than they should.
