So you've received your new 2012 property assessment from MPAC, the Municipal Property Assessment Corporation and the good news is, the value of your home / property has increased from the last assessment cycle in 2008.
Toronto property values have seen double digit increases of 22.8% on average across all wards, with Davenport (Ward 44) and Willowdale (Ward 23 & 24) seeing the largest increases of 33.72%, 31.44% and 29.56% respectively. But with the good news of property values increasing, the bad news is so will your taxes which is also based on your MPAC property assessment.
MPAC is responsible of assessing all properties in Ontario to determine the property tax to be assessed for the Ontario Ministry of Finance. To establish your property’s assessed value, MPAC analyzes property sales in your community and key features of every property including number of bedrooms, washrooms, location, lot dimensions, living area, property age and construction quality.
The increases in property value and tax is not surprising as the real estate market in Toronto and GTA has been booming over the last 4 year assessment cycle. The average resale home price over the past 4 years has increased by 7-9% per year, with the average price from January - November 2012 being $498,243, a increase of $102,783 or 26% since 2009. So if your buying a new home, makes sure to check out the current property taxes and future assessment, as the property tax estimate on the listing might not reveal the true cost that you will require to pay. Attached below is the full article from the Toronto Star: