Hamilton’s real estate appeal is no longer a secret and with that property values are rising, and so are the property taxes, infact, they lead the province.
Some residents didn’t have to wait for real estate site Zoocasa’s report to know that Hamilton has the highest property tax rate in Ontario.
The study reveals that the monthly property tax bill for a $500-thousand home in Toronto would cost about $264. In Vancouver, about $102 and in Hamilton, a staggering $525.
Hamilton Burlington Real Estate Board President Jack Loft admits that newcomers buying in Hamilton tend to get sticker shock.
About 90% of Hamilton’s revenue comes from property taxes, in 2016, the city pulled in over half a billion dollars where part goes to services unique to Hamilton.
Hamilton is the only jurisdiction in North America where social services are paid for by municipalities.
This year, taxes increased by 1.9% but the city says as a whole, taxes are only 8% higher than the provincial average, down from 12% years ago. They add that they’re working to decrease the tax burden on home owners.
According to the city, “We are more reliant on residential property taxes than our neighbouring municipalities so that is our focus is to grow our non residential tax base whether it’s commercial or industrial’.
Further, Hamilton doesn’t charge a one-time land transfer fee for buyers, which brought Toronto an extra $527-million in 2016.
The city did admit that one downfall of the higher property taxes is that Hamilton has a lower household income than cities like Toronto and Vancouver and thus puts a financial strain on those people.