Is Your Property Eligible to be Taxed as Farm Land?

Farm property can be eligible for a significant property tax break.  If you qualify, your farm residence and one acre of surrounding land will be taxed at your municipality’s residential tax rate and the rest of your property at 25% of the residential rate, a significant savings.

To be eligible, the land must be assessed as farm land by the Municipal Property Assessment Corporation (MPAC).  You must either farm the property yourself or have it farmed by a tenant farmer.  The gross income as reported to Cananda Revenue must be $7,000 or more, although there are some exceptions (such as age, illness, death, an off production year or a start-up operation).  You must also have a valid Farm Business Registration (FBR) number and be a Canadian citizen or permenant resident.

If you buy farmland, the Farm Property Class application will be sent to you and must be returned within the required deadline for the upcoming tax year. If you do not meet the deadline, your property will be taxed at the full residential tax rate.

If you purchase or own property that is eligible, but is not currently taxed as farm land, contact the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) for more information and an apllication form.

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