How to Lower and Defer Your Property Taxes

If you feel that you are overpaying on your property tax, then there are a few options that you can take.  Do you want to learn how to lower and defer property taxes? You can appeal the assessed value of your home and thereby lower your tax liability. Additionally, you can also take advantage of the provincial land tax deferral program as well the Ontario senior homeowner’s property tax grant.

Did you know that you may be paying more than required on your property taxes? Hi, my name is Allan Madan, your trusted accountant, and here I’ll discuss how to reduce property taxes or defer them.

What is Property Tax?

Different types of property such as real property, including real estate, are subject to annual property taxes. Property taxes are calculated based on property valuations. In Ontario, this function is performed by The Municipal Property Assessment Corporation (MPAC).

Most people incorrectly assume that because property valuations have increased, your property taxes will also automatically go up. This is not entirely true. If the value of your property increases at about the same rate as the rest of the homes of your neighborhood, then you will not see a property tax increase. However, if the rate of increase in the value of your home is higher than those in your neighborhood, then your property taxes are likely to go up.

So the question really is – is there anything I can do to lessen my property taxes or prevent my property taxes from going up? Well, there are a few solutions.

OPTION ONE: Appeal the assessed value of your property.

If you feel the assessed value of your home is too high then you can appeal it to get a lower assessed value. To help you in preparing your appeal you should:

1. Compare your home with similar properties in your neighborhood to determine if it is being truly overvalued.
2. Request the comparable property report from the Municipal Property Assessment Corporation (MPAC).
3. Request your home appraisal from your lender.

When filing for an appeal, including all of these supporting documents to show that your home is being overvalued.

OPTION TWO: Use the Provincial land tax deferral program for low-income seniors and low-income persons with disabilities.

If you are older than sixty-five or suffer from a disability, and you have a low income below $30,000 then you may qualify for this program to minimize your property taxes. If you are over 65 and suffering from a disability and your household income is less than $30,000, you may be eligible for this program. To qualify you must at least be paying property taxes for your principal residence. This program allows for a partial deferral from paying property taxes. The deferred property taxes are due when you eventually sell your home.

OPTION THREE: The Ontario senior homeowner’s property tax grant.

This is a grant of $500 toward your property taxes if you are a senior above sixty-five years of age and have a household income of less than $35,000. For those seniors whose household income is over $35,000, there is a reduction grant equal to 3.3 percent of the overage. However, seniors with household incomes of more than $50,000 are not eligible for this grant.

Thanks for readingthis article about how to mitigate your property taxes, and I hope you found it useful. Please comment because it helps me come up with more relevant content. Also, get access to a free report, ’20 Secrets on How to Beat the Tax man’.

ABOUT THE AUTHOR

ALLAN MADAN

CPA, CA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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