bex1

Hi, Can you please help with some information or direct me to where I might find out about the following 2 things.

1) How is the cost of annual tax worked out on your property? and is it the same formula across Canada or is it Provincial? I have been told that this is based on the value of your property and will fluctuate with the value, is this correct?

2) What are the tax brackets for employment, ie, do you pay different percentages of tax the more you earn? Again, is this formula applied across the Country or differ Provincially.

Many thanks for any help you can give

Zap0ne

Hope that this helps

JonboyE

It is administered provincially. In BC the property for 2010 is assessed at its market value on July 1, 2009. The actual amount of the tax you pay depends on the municipality. If two houses are assesses at $300,000 and $400,000 and the municipality needs $6,000 the first house pays 6,000/(300,000+400,000)*300,000 = $2,571 and the second house pays 6,000/(300,000+400,000)*400,000 = $3,429.

It is a combination of federal and provincial rates. Your best bet is to look here http://www.taxtips.ca/marginaltaxrates.htm

bex1

Thank you guys, those links are really helpful, especially on the personal tax issue. Didn't realise it could vary so much, we are considering Calgary or Ottawa, interesting Alberta has a fixed 10% provincial tax.

So guessing that with the property tax it factors in what amenities need upkeeping around you, like schools etc, is this right - does this have an effect on the tax you pay?

Novocastrian

One wonders though why a municipality with only two houses would need so much.

R I C H

It also matters whether you're located within city limits or not. Outside of city limits you have a reduced range of services (ie no garbage collection, or municipal water supply for example), therefore the tax rates are adjusted down accordingly. I moved from a property that was in city limits to one that's 2kms outside and my tax halved. This is balanced out somewhat by increased property insurance costs as the house is no longer considered covered by city fire services.

MB-Realtor

I don't believe property tax is a provincial government matter, but rather your local municipality, either city or rural municipality.

At least thats the case in MB.

Property Transfer taxes tend to be provincial.

JonboyE

In BC the assessments are made by a provincial body. The tax is raised by the municipality.

JonboyE

A fact finding trip to somewhere nice and warm costs $6,000 regardless of the number of houses in the municipality.

Novocastrian

In Ontario, and I believe everywhere else, the Property Evaluation Assessment is done provincially.

Municipalities set their local mill rate which determines what percentage of the valuation you pay annually. Around here it's about 1%.

MB-Realtor

So it is the Municipality that actually sets the tax rate, the provincial department only values the home for tax purposes, but does not it self impose property tax, which is done locally.

iaink

All you ever wanted to know about assesments can be found here...these are the people that do the dirty job....

http://www.mpac.ca/

JonboyE

Or these ...