Property tax
Property taxes: London vs Toronto
Here's a cost that surprises many people moving from Toronto: London's property tax rate is considerably higher. Because London homes are assessed at lower values, the actual bill on a comparable home isn't always higher, but it's not the windfall people expect either.
How property tax works in Ontario
Your annual property tax is calculated as:
Assessed value (from MPAC) × total tax rate = your property tax bill
- Assessed value is set by the Municipal Property Assessment Corporation (MPAC). It's not your purchase price. Ontario's province-wide reassessment has been postponed for several years, so assessments have been based on an older valuation date. Check MPAC for the current status. Your assessment may be well below what you paid.
- The total tax rate combines the municipal rate (set by city council) and the provincial education rate (set by Ontario, and the same across the province for residential property).
Why London's rate is higher
Toronto's residential tax rate is among the lowest of Ontario's large municipalities. London's is considerably higher: in 2026 its total residential rate is more than double Toronto's. There are several reasons:
- A larger assessment base per resident in Toronto. High property values mean Toronto can raise the same revenue with a lower rate.
- Toronto's large commercial and industrial base carries a significant share of the city's tax load.
- Toronto's municipal land transfer tax is a major revenue source that London doesn't have, which reduces Toronto's reliance on property tax.
| Year | City of London | City of Toronto |
|---|---|---|
| 2026 | 1.727111% | 0.767311% |
Sources: City of London, 2026 Tax Rates (residential code RTN: 1.574111% municipal + 0.153000% education); City of Toronto, Property Tax Rates and Fees, 2026 (0.605295% city + 0.009016% City Building Fund + 0.153000% education).
Working out your actual bill
Because assessments differ so much, the only fair comparison is your own:
- Find the assessed value of a specific home you're considering in London. It's on the listing or available through MPAC's AboutMyProperty for owners, and your agent can often find it.
- Multiply it by London's total residential rate for the current year.
- Do the same for your current Toronto home, using Toronto's rate. Or simply look at your current tax bill.
Illustration only (hypothetical numbers): if a London home is assessed at $400,000 and the total rate is 1.4%, the bill is $5,600. If a Toronto home is assessed at $700,000 and the rate is 0.7%, the bill is $4,900. The London bill is higher despite the lower value. Run the real numbers for the actual homes you're comparing.
What this means for the move
- If you're upsizing, say from a Toronto condo to a London detached home, expect your property tax bill to rise, possibly significantly.
- If you're moving like-for-like (house to similar house), the bills may be closer than you'd think: a lower assessment times a higher rate.
- The savings from the lower purchase price usually dwarf the property tax difference over most time horizons. But property tax is an ongoing cost, so include it in your monthly budget.
Other things to know
- Payment schedules: both cities offer instalment and pre-authorized payment plans. Your mortgage lender may collect taxes with your mortgage payment.
- New homes: new construction can bring supplementary or "omitted" tax bills once MPAC assesses the finished house.
- Toronto's Vacant Home Tax: if you keep your Toronto property after moving, Toronto requires annual occupancy declarations and may charge a vacant home tax on properties left empty. Check the City of Toronto's current rules.
- Seniors' and low-income relief: both cities have programs. Eligibility and amounts differ.
- Assessment appeals: if you believe your assessment is wrong, you can file a Request for Reconsideration with MPAC within its deadline.
Will London's rate stay higher?
Most likely, for the structural reasons above. Both cities adjust their rates every year through their budgets. Annual increases are debated at council and published well in advance, so you can follow London's budget process on the City's website to see what's being proposed.
Your local agent
See what your budget actually buys in London
Averages only go so far. The most useful comparison is concrete: what homes like the one you want have recently sold for in the London neighbourhoods you'd consider. Rayna Elabed, a Sales Representative with CENTURY 21 First Canadian Corp., Brokerage in London, can help you look at current listings and recent sales so you can put real numbers against your Toronto costs.
Sources
- City of London, Property Taxes.
- City of Toronto, Property Tax Rates and Fees.
- MPAC, mpac.ca.