Altus Group strengthens CRE data and analytics capabilities through acquisition of Reonomy. Learn more close Canadian property tax rate benchmark report 2021 Altus Group’s annual analysis of property tax rates and commercial-to-residential property tax ratios across Canada Over the last 18 years, we have benchmarked and analyzed property tax rates of major urban centres across Canada to identify the ratios of tax rates between commercial and residential properties. The findings of this report are used by Altus Group and REALPAC to create dialogue with taxing authorities about tax fairness, influence public policy and promote a healthy and competitive business environment for the real estate sector. Download the report About commercial and residential property tax Property tax is the main source of revenue for Canadian municipalities and is used to fund services such as road repair, education, recreational programs and public transit. Both residents and business owners pay property taxes, but the rate they pay varies depending on whether the property type is commercial or residential – taxing authorities set these rates at their discretion. The issue and subsequent argument that arises is the perceived fairness of the different property tax rates paid between commercial and residential taxpayers, and who should proportionally fund more, or less for education and municipal services – businesses or residents. What’s inside? 2021 commercial-to-residential tax ratios 2021 commercial rates 2021 residential rates 2003 – 2021 trend analysis Spotlight: How current are your city’s property assessments? Download the report What is the commercial-to-residential property tax ratio in your municipality? The map shows the 11 cities surveyed and their respective commercial-to-residential ratios. In 7 out of 11 municipalities across Canada, commercial tax rates are at least 2.5 times greater than residential tax rates. 2021 above-average property tax ratio rankings: 2021 saw a shift in commercial-to-residential tax ratios, with two more municipalities moving into above-average ratios. In 2020, Montreal, Toronto, Quebec City and Halifax sat above the average ratio. In 2021, Vancouver and Calgary joined the above-average ranking, while Montreal, Quebec City, Toronto and Halifax remained in a similar ranking to 2020. 2020 Montreal Toronto Quebec City 2021 Montreal Quebec City Toronto The case for lower commercial property tax rates High commercial property taxes place a greater weight on businesses to contribute an unequitable share of municipal and education budgets. While every homeowner would appreciate paying less property tax, it is important to balance the burden paid by businesses in each city. Lower commercial property taxes help make cities more competitive and promote job growth. 3 tax ratio trends in 2021 Vancouver although Vancouver’s ratio began trending downward in 2017 to a historic low of 2.30 in 2020, the reversal of the Provincial School Tax reduction in 2021 caused the city’s ratio to rebound to 3.41. Vancouver returns to sitting well above the average ratio. Calgary office properties in downtown Calgary continue to struggle, resulting in a shrinking non-residential tax base. With increasing commercial tax rates and a decreasing residential tax rate, Calgary returns to the trend of a rising commercial-to-residential ratio now sitting above the survey average at 2.78. Montreal continued a three-year trend of posting the highest commercial-to-residential ratio, currently sitting at 4.17. The city’s ratio rose 1.5% in 2021, marking the second year in a row to post a commercial-to-residential ratio exceeding 4:1. Download our complete analysis today Download the report Site map Legal Cookie policy Accessibility e-Communication preferences © Copyright 2021 Altus Group Limited and/or its affiliates. All Rights Reserved By using our website, you are agreeing to our use of cookies. Click here for more information. Accept