Property tax in Toronto is calculated by multiplying a property's assessed value by the tax rate set for its property class. The assessed value comes from the Municipal Property Assessment Corporation (MPAC), not from the City and not from what you paid.
The 2016 valuation date
MPAC states that assessments for the 2026 tax year continue to be based on January 1, 2016 current values (as of October 16, 2026). The province-wide update originally planned for 2020 was postponed because of COVID-19, and the postponement has been extended since. MPAC describes the figure as what the property would have sold for on January 1, 2016, in its current state and condition.
Practical consequences:
- A recent purchase price does not reset the assessment. The bill for a loft bought this year is still based on the 2016-dated assessment.
- Additions, new construction and renovations can change the assessment, because the 2016 value is applied to the property as it is now.
- A new condominium or loft conversion gets a first assessment once it exists as separate units, which a pre-construction buyer may not see until after closing.
Questioning an assessment
MPAC lists a Request for Reconsideration process, with a deadline of March 31 of the tax year for residential owners, as of the 2026 tax year. Business properties may go to the Assessment Review Board directly. Check MPAC's site for the deadline on your own notice.
Where this connects
The same assessment is the base for Toronto's Vacant Home Tax. When comparing lofts, ask for the actual tax bill rather than estimating from price: two units at the same price can have different assessments.