Canada: Toronto Property Tax – Municipal Tax Relief Programs – Toronto Tax Lawyer Analysis

Last Updated: August 11 2016
Article by David Rotfleisch

Introduction – City of Toronto Property Tax Relief

If you live in Toronto and are having difficulty paying your property tax you may be eligible for municipal tax relief. The City of Toronto will consider reducing or cancelling property taxes owing for a particular year if the taxpayer is unable to pay due to sickness or extreme poverty. The City of Toronto also has a program in place that allows low income seniors and low income disabled persons to defer or eliminate municipal property tax if it is the result of a tax increase. Low income seniors and low income disabled persons may also be eligible for special water rebates. Accessing these programs requires you to move quickly to meet the program deadlines and to know whether or not you meet the requirements. Our Toronto tax lawyers can help you find out if you are eligible for reducing or cancelling Toronto property taxes and make any required applications on your behalf.

Relief from Toronto Property Taxes due to Sickness or Extreme Poverty

The City of Toronto Act allows a property owner to apply to have all or part of the property taxes levied on their property reduced, eliminated, or refunded due to the owner's inability to pay on account of sickness or extreme poverty. The application only covers one particular year and must be filed with the city Treasurer before February 28th of the year following the one with respect to which the application is made. If the application has merit it will lead to a hearing before the Assessment Review Board to give the taxpayer an opportunity to provide evidence of their illness or extreme poverty. Statistics Canada's Low Income Cut Offs may be used as a reference point by the Board and the City when considering applications based on extreme poverty. If you require assistance applying for tax relief under this program, please consider speaking with one of our Toronto tax lawyers.

Municipal Tax Relief for Low Income Seniors and Low Income Disabled Persons

The City of Toronto offers tax relief to low income seniors and disabled persons through the deferral or cancellation of the part of their property tax bill on their principal residence that is due to a tax increase, and through the issuance of water rebates. Applications for property tax deferral, property tax cancellation, or water rebates must be filed with the Treasurer by the 31st of August in the year with respect to which the application is being made. The Treasurer has the discretion to choose to accept applications that are filed late so long as they are filed before the 31st of December of that year.

Under the property tax deferral program, the proportion of property tax owing for the current year that is a property tax increase can be deferred by an eligible person. A property tax increase is the amount by which the property tax owed in the current year exceeds the amount of property tax owed in the previous year, except for any increase in property tax which is the result of the value of the property increasing due to alterations made to the property. Property tax that is deferred under this program must be paid the following year unless another successful application is made in that year as well.

Property tax deferral will only be available if the taxpayer earns income below a specific legislated threshold, which is $50,000 of household income for 2016, and qualifies as senior or disabled. The property targeted by the application must be the taxpayer's principal residence. Relief will not be available if there are property taxes arrears outstanding for previous years. To qualify as a senior the taxpayer needs to be at least 65 years old. If the taxpayer is between 50 and 64 years old they may qualify if they are receiving payments from a pension registered under the Income Tax Act or are receiving benefits under the Old Age Security Act. To qualify as disabled, a taxpayer needs to have a disability and be in receipt of certain disability benefits. Our team of Canadian Tax lawyers are experts at interpreting a wide variety of tax legislation and can accurately identify your eligibility for relief with respect to Toronto property tax.

If you meet the criteria necessary to qualify for a property tax deferral then you will qualify for water rebates if you have metered water services in your home and consume less than 400 cubic meters of water per year. The size of the water rebate is determined by multiplying the amount of water you consumed in a year by a rebate rate. The rebate rate is equal to the difference between Toronto's domestic general-use rate and its industrial process-use rate. As of 2016, the current rebate rate is $1.035 per cubic meter. If you were eligible for only part of the year then your rebate will be pro rated so that you only receive a rebate for the portion of the year that you were eligible. The rebate is applied to the eligible person's first utility bill of the following year. You may still be eligible for a water rebate even if you owe property tax arrears from previous years.

The cancellation program allows an eligible person to cancel the proportion of their property taxes for the current year that is a tax increase. As with the deferral program, a tax increase is the amount by which the property tax owed in the current year exceeds the amount of property tax owed in the previous year, excluding any increase in property tax which is the result of the value of the property increasing due to alterations made to the property.

The requirements for tax cancellation are substantially the same as for tax deferral, except for a few additional restrictions. To qualify for property tax cancellation in 2016, the taxpayer needs to have a household income of less than $38,570. The value of the property owned by the taxpayer must also have had an assessed value of less than $715,000 for 2015 and 2016, and less than $650,000 for 2013 and 2014. The definition of "senior" used for determining eligibility for cancellation is more restrictive and includes only people who are 65 or older and people between the ages of 60 and 64 who are receiving certain benefits under the Old Age Security Act.

Conclusion – Toronto Property Tax Relief

The City of Toronto offers several forms of municipal tax relief to property owners who are having difficulty making payments. If the inability to pay is a result of sickness or extreme poverty then the property owner can apply to have part or all of their property taxes for the year deferred or cancelled. The City of Toronto also allows low income seniors or disabled persons to apply to defer or cancel the portion of their property taxes that is due to an increase in their property taxes compared to the previous year. Low income seniors and disabled persons may also qualify for a special water rebate. The City of Toronto is governed by different rules than the rest of Ontario's municipalities, but many of them have similar programs in place. If you have questions about your eligibility for Toronto's municipal tax relief programs, or their equivalent in your municipality, please consider speaking with one of our Toronto tax lawyers. We can make detailed submissions on your behalf to ensure you receive the relief that you are entitled to.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.