Understanding Property Assessments and How They Impact Your Taxes $$

by Tyler Condon

Understanding Property Assessments and How They Impact Your Taxes $$

Property assessments can feel confusing, but they play a big role in what you pay in property taxes. So, let’s break it down in a simple and easy way.

What Is a Property Assessment?

A property assessment is MPAC’s estimate of what your home was worth on a certain date. It’s not the same as today’s market value. Instead, MPAC uses the same valuation date for everyone to keep things fair.

They look at things like:

Your neighbourhood
The size of your home and lot
The age of the home
Renovations or upgrades
Features such as garages or finished basements

Because of this, your assessed value is meant to match homes that are similar to yours.

How Does This Affect Your Taxes?

Even though MPAC sets your home’s assessed value, they do not decide your tax rate. Your local municipality sets the rate based on its budget.

Your taxes are calculated using this formula:

Assessed Value × Municipal Tax Rate = Property Taxes

When your assessment goes up, your taxes might go up too. However, cities often adjust their tax rates, so the final number can still vary.

More importantly, your taxes may change based on how your home’s assessment compares to others in your community.

If your home increased more than the local average, you might pay more.
If it increased less, you may see a smaller change.

Why Does This Matter for Homeowners?

Understanding assessments helps you plan ahead. For example:

You can get a better idea of your annual costs.
You’ll be ready to answer questions if you decide to sell.
You can compare your home to others in your neighbourhood.

For buyers, assessments can also help you estimate future taxes and understand the city’s view of the property.

What If You Think the Assessment Is Wrong?

If your assessed value feels too high, you can file a Request for Reconsideration (RfR) with MPAC. This is free, and it gives you a chance to show why your home may be worth less than they estimated.

📞 Tyler Condon
Realtor®, Coldwell Banker Electric Realty
📧 tcondon@cbelectricrealty.ca
📱 705-872-7355