The process by which the Municipal Property Assessment Corporation (MPAC) determines the assessed value of your property for the purpose of calculating property taxes. MPAC evaluates every property in Ontario based on factors including location, lot size, living area, age, condition, and recent comparable sales. Assessments are intended to reflect current market value, though they can sometimes lag behind or overstate actual market conditions.
Why It Matters
Your property tax assessment directly determines how much property tax you pay each year. If MPAC's assessed value seems too high, you have the right to file a Request for Reconsideration and, if necessary, appeal to the Assessment Review Board. In the GTA, where property values have fluctuated significantly, reviewing your assessment notice and comparing it to recent sales of similar homes in your neighbourhood can potentially save you hundreds or thousands per year in property taxes.
Real-World Example
You receive your MPAC assessment notice showing your Oakville townhouse valued at $780,000, based on a January 2016 valuation date. You know comparable townhouses in your complex recently sold for $650,000 to $700,000, but MPAC's assessment reflects the pre-pandemic valuation cycle. Your annual property tax at Oakville's rate of approximately 0.95% is $7,410 based on the assessed value. If MPAC conducted a new assessment reflecting current market conditions, your assessed value might drop, potentially saving you $500 to $1,000 per year in property taxes.
Ontario & GTA Context
MPAC is mandated to assess all 5.5 million properties in Ontario. The last province-wide reassessment was based on a January 2016 valuation date, and the Ontario government has delayed subsequent reassessments multiple times. This means current property tax bills may be based on values that do not reflect recent market changes. When a reassessment eventually occurs, properties that have appreciated faster than average will see tax increases, while those that have lagged may see decreases. Newly built properties are assessed at current value, creating potential inequities within neighbourhoods.
How It Works in Practice
Review your MPAC assessment notice when it arrives and compare the assessed value to recent comparable sales. If the assessed value seems too high, file a Request for Reconsideration through MPAC's online portal or by mail. You have 120 days from the mailing date of the assessment notice to file. Gather supporting evidence including recent sale prices of similar properties in your neighbourhood.
Common Questions
How often does MPAC reassess properties in Ontario?▾
Can I challenge my property tax assessment?▾
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