Top 10 Cities in Canada With the Most Expensive Property Taxes (Most Homeowners Are Shocked by #3)
Introduction: Property Taxes — The Cost Nobody Brags About
When people talk about buying real estate in Canada, the conversation usually revolves around home prices, interest rates, and mortgage approvals. Rarely does anyone lead with the question that quietly drains thousands of dollars every year:
“How much are the property taxes?”
And yet, property taxes are one of the most underestimated costs of homeownership. Unlike mortgage payments, you can’t refinance them away. Unlike interest rates, you can’t lock them in. And unlike maintenance, they never really go down.
Here’s the twist most Canadians don’t realize:
👉 The cities with the highest property taxes are NOT the ones with the most expensive homes.
In fact, many homeowners in lower-priced markets pay more in annual property taxes than owners of million-dollar homes in major cities.
Let’s break it down.
How Property Taxes Actually Work (Quick & Simple)
Property taxes in Canada are calculated using two main components:
- Your home’s assessed value
- Your municipality’s tax rate (mill rate)
Formula:
Assessed Value × Tax Rate = Annual Property Tax
That means:
- A lower-priced home in a high-tax city can cost more annually than a high-priced home in a low-tax city
- Property taxes vary wildly across provinces and even between neighbouring towns
This is where many buyers — and even seasoned investors — get caught off guard.
The Top 10 Most Expensive Property Tax Cities in Canada
These rankings are based on effective residential property tax rates and typical annual tax burden, not just home prices.
1. Winnipeg, Manitoba
Why it tops the list:
Winnipeg consistently ranks as the city with the highest effective property tax rate in Canada, hovering around 2.6%.
That means:
- A $400,000 home can easily carry $10,000+ per year in property taxes
- Many homeowners pay more in taxes than in mortgage principal
Mortgage angle:
High property taxes directly impact debt-service ratios, which can reduce mortgage affordability and approval amounts.
2. Saint John, New Brunswick
Saint John combines moderate home prices with very high tax rates, often around 1.7%–1.8%.
Why it hurts:
- Taxes eat into rental cash flow
- Long-term holding costs surprise new buyers
Real estate angle:
Low entry prices attract investors — but high property taxes quietly erode returns.
3. Sault Ste. Marie, Ontario
This one shocks a lot of Ontario buyers.
Despite affordable home prices, Sault Ste. Marie carries one of the highest property tax rates in Ontario, often above 1.7%.
Why this matters:
Many buyers assume Ontario cities have “Toronto-like” tax structures. They don’t.
4. Charlottetown, Prince Edward Island
PEI may feel idyllic, but property taxes in Charlottetown often exceed 1.6%.
Add in:
- Smaller local economies
- Limited municipal revenue bases
And property owners shoulder a heavier burden.
5. London, Ontario
London consistently ranks among the highest-taxed cities in Ontario, with rates around 1.4%.
For context:
- A $650,000 home in London can pay similar property taxes to a $1.2M home in Toronto
Mortgage angle:
Higher property taxes reduce net affordability even when mortgage rates look attractive.
6. Hamilton, Ontario
Hamilton combines:
- Rising home values
- Above-average tax rates
Result: Some of the highest total tax bills in Ontario.
Investor insight:
Cash-flow projections often fail when taxes increase faster than rents.
7. Fredericton, New Brunswick
Fredericton’s property tax rates often sit above 1.3%, which is high relative to average home values.
This creates:
- High ownership costs
- Lower net returns for landlords
8. Regina, Saskatchewan
Regina’s tax rates frequently exceed 1.3%, placing it among Canada’s higher-tax cities.
Real estate reality:
Prairie affordability helps — but taxes still matter long-term.
9. Ottawa, Ontario
Ottawa surprises people because it’s not cheap — and it’s not low-tax.
Rates around 1.0%–1.1%, combined with higher home values, produce large annual tax bills.
10. Halifax, Nova Scotia
Halifax rounds out the list with property tax rates around 1.1%, higher than many major Canadian cities.
With rising home prices, taxes have become a growing concern for buyers.
The Big Surprise: Toronto & Vancouver Aren’t on This List
This is where most people do a double-take.
Toronto and Vancouver have:
- Very high home prices
- Very low property tax rates
Toronto’s residential tax rate is often below 0.7%.
Vancouver’s is even lower.
That’s why:
- A $2M Toronto home can pay less property tax than a $600K home in some smaller cities
- Buyers who only focus on purchase price miss the real cost picture
Why Property Taxes Matter for Mortgages
Property taxes aren’t just a “later problem.” They directly affect:
✔ Mortgage Approval Amounts
Taxes are included in GDS/TDS calculations
✔ Monthly Cash Flow
Escrowed or lump-sum, taxes reduce disposable income
✔ Refinance & Equity Strategies
High taxes limit how much equity can be leveraged safely
✔ Investment Returns
Cash flow lives or dies by taxes, not just interest rates
Smart Mortgage & Real Estate Strategies to Offset High Property Taxes
Here’s where strategy matters.
1. Mortgage Structuring
Choosing the right amortization, product type, and payment structure can offset tax pressure.
2. Location-Based Buying
Two homes at the same price can have thousands per year difference in taxes.
3. Rental Income Optimization
Proper rental offset treatment can neutralize tax impact on approvals.
4. Reassessment Reviews
Many homeowners overpay because they never challenge assessments.
Final Thought: Property Taxes Are the Silent Deal Killer
Property taxes don’t trend on social media.
They don’t make headlines like interest rates.
But over 25 years, they can cost more than your mortgage interest.
Smart buyers, investors, and homeowners don’t just ask:
“What’s the rate?”
They ask:
“What’s the real cost of owning this property?”
Need Help Running the Numbers Properly?
If you’re buying, refinancing, investing, or relocating — especially across provinces or cities — understanding property taxes + mortgages together is critical.
📞 Call or text: 437-961-0004
We help clients across Ontario and all of Canada make smarter mortgage and real estate decisions — without expensive surprises later.
