Homeowners who have applied for a building permit may be eligible for a property tax reduction, if their property was demolished, damaged or renovated during the year. If you are a builder who has applied for a Building Permit on behalf of a homeowner, please ensure that the homeowner is provided with this information:
How it works
You may file an application with the Treasurer requesting your taxes be reduced or refunded if the following conditions under Section 323, the City of Toronto Act apply:
- The building on the land during the year was;
- razed by fire, demolition or otherwise, or;
- damaged by fire, demolition or otherwise and is rendered substantially unusable;
- Repairs or renovations prevented the normal use of the property for at least three months during the year;
In order to qualify under this program, the property owner (or a spouse, tenant or other person with registered interest in the land) must file the application with the Treasurer on or before the legislative deadline on February 28 of the year following the year in respect of which the application is made (unless February 28 is not a business day then the deadline date would fall on the next business day).
The City relies on the Municipal Property Assessment Corporation (MPAC) to determine the portion of the assessment value subject to reduction or cancellation because of damages, demolition or repairs and renovations.
The City of Toronto Government Management Committee is the body that considers the application and approves the actual amount of reduction or cancellation in taxes based on staff recommendations. You will be sent a Notice of Hearing advising you of the date and time of the public hearing. Once the Government Management Committee has rendered its decision, you will receive a Notice of Decision.
For more information on Tax Appeals - Cancellation, reduction, refund of taxes, and/or to apply for cancellation, reduction, or refund of taxes please read the information sheet and complete the application form.
Only a partial amount of the property taxes can be reduced or cancelled. Some amount of taxation for the year will apply in acknowledgement that in Toronto, land, even without a structure, has assessment value.
Changes/Improvement to your property
If you make changes/improvements (e.g. a new home or addition) to your property that are not reflected in the assessment value provided to the City on the annual assessment roll, MPAC may reassess the property and issue a Post Roll Assessment Notice/Property Assessment Change Notice. The City will subsequently issue omitted/supplementary tax bills.
More information on supplementary/omitted tax bills.
To learn about the Building/Demolition Permits and how to make an application, please visit Toronto Building.