How Much is Property Tax in Vancouver?

Purchasing a property as a home or investment is always an exciting time, with most people focusing their search on properties with an asking price they can afford. But there are a lot of hidden costs to consider, including ongoing repairs and maintenance, with big renovations among the most costly.
 
Something that many people overlook when purchasing real estate is the property tax requirement, which can vary dramatically from one location to the next. It’s a mandatory cost that needs to be met year after year and something that should be budgeted into the decision-making process.
 
This article explains everything you need to know about property taxes in Vancouver, including how they are calculated and how they compare to other Canadian cities. If you’re looking to move into the area or purchase an investment property, you can browse a diverse range of Vancouver rentals online at rentola.ca. It showcases properties in all corners of the city and provides an indication of potential rental returns. By understanding the rental income potential and the property tax requirements, you can make a better-informed decision about whether the purchase is right for you.
 
Vancouver property prices
As of 2023, Vancouver has the most expensive real estate prices in Canada, with the average home currently more than $1.2 million. Back in 1977, the average price for a home was just $90,000 and over the last 10 years, property prices in Vancouver East have increased by more than 100%.
 
This rapid increase is believed to be a result of British Columbia’s strong economy and relatively low unemployment. All of this equates to steady population growth as more and more people want to move to Vancouver, leading to a greater demand for homes.
 
Vancouver property taxes explained
Property taxes in Vancouver are calculated based on the value of a home, as determined by the British Columbia Assessment. This assessment takes into consideration the location, size, and age of the home, as well as other factors such as completed/ongoing renovations and market fluctuations. In some cases, this assessed value may not be the same as the market value. The property tax payable is calculated by multiplying the British Columbia Assessment value by the property tax rate for that year.
 
At the start of each year, property owners in Vancouver receive notification of their property’s value as of July 1 the previous year. This figure is then multiplied by the tax rate and property owners are required to pay the final figure to the relevant office, prior to the deadline outlined in the notification.
 
Canadian property taxes vary based on the municipality and are used to fund vital services, such as schools, hospitals, and emergency services. They also cover the collection of garbage. As a result, the property tax rate changes from year to year, depending on the amount of funding that is required. For example, if a municipality is offering new services to its residents, this may result in an increase in property taxes.
 
When observing property taxes, you might notice that they comprise a Municipal Tax and a School/Education Tax. These are usually determined by the number of residences in the municipality and their values. For example, the Municipal Tax Rate in Vancouver for 2023 was 0.163321% while the Educational Tax Rate was 0.084419%. The Final Tax Rate was 0.278070%. Back in 2010, the Municipal Tax Rate in Vancouver was 0.214861% while the Educational Rate was 0.155095%. The Final Tax Rate was 0.421377%.
 
How Vancouver’s property tax rate compares to other Canadian cities
As each municipality sets its own tax rate, the amount that residents are paying each year varies across Canada. Generally speaking, cities with higher property prices have lower tax rates, but this is not always the case.
 
While British Columbia has some of the highest property prices and living costs in Canada, it also has one of the lowest property tax rates in the country at the current time. An average home in Vancouver costs almost $1.2 million, but with the property tax rate of 0.278070%, owners pay just over $3,300 in annual rates.
 
In contrast, Montreal (which has an average property price of around $520,000) sees most residents paying only slightly less in rates ($2,754) due to a higher tax rate of 0.5305%. Toronto has a property tax rate of 0.666274%, meaning that with an average-priced home of around $1.2 million, owners are paying roughly $8,000 in property taxes.
 
In parts of Canada where home prices are still relatively affordable, such as Winnipeg and Sault Ste. Marie, the property taxes are much higher. For example, Winnipeg has a property tax rate of 2.6439% but an average home price of just $344,000. Residents in Guelph are paying the most per year in taxes (around $10,000) due to relatively high property prices and a tax rate of 1.229079%.