Understanding your property assessment in Ontario can lead to real savings on taxes. This guide breaks down how MPAC assesses values, helps you calculate what your home should be worth, and walks you through the appeal process—from gathering evidence to filing with the Assessment Review Board.
1. How MPAC Assesses Your Home
The Municipal Property Assessment Corporation (MPAC) assigns your Current Value Assessment (CVA) based on the market as of January 1, 2016—still the legal benchmark for 2025 taxes.
MPAC uses three main methods:
- Sales comparison – comparing similar nearby properties
- Cost approach – land value plus replacement cost, minus depreciation
- Income approach – for rental or commercial properties
Your property tax bill is calculated by applying municipal tax rates to this CVA.
2. Why Assessments Matter
Your property taxes depend on how your home’s assessed value compares to others:
- If your CVA rises more than the neighbourhood average, your taxes go up
- If it increases less, your taxes may stay steady or even drop
Even without a tax rate increase, an inflated CVA can raise your taxes—making it essential to challenge incorrect assessments.
3. Calculating a Fair Assessment
To determine if your assessment is fair:
- Use MPAC’s AboutMyProperty tool to pull data on similar homes nearby
- Compare features: lot size, square footage, age, and renovations
- Look at sale prices from around 2015–2016 for comparable properties
- Adjust for differences (e.g., finished basement, larger lot)
- Combine this data to build a strong, numbers-based case for a lower CVA
4. Step-by-Step: Appealing Under the MPAC Guide
A. Request for Reconsideration (RfR) – Residential, Farm, Conservation
- File within the deadline shown on your Assessment Notice (usually 120 days from mailing)
- Submit your case through MPAC’s online portal with:
- Comparable property data
- Photos of issues (e.g., cracks, unfinished areas)
- Appraisal reports or renovation permits
- Comparable property data
- MPAC reviews your case and sends a decision. If you disagree, you have 90 days to escalate.
B. Appeal to the Assessment Review Board (ARB)
- Commercial properties may bypass RfR and file directly
- File within 90 days of MPAC’s RfR decision, or by March 31 of the tax year for annual notices
- Submit online via ARB’s e-File system (cheaper than paper forms)
- Pay the fee:
- $132.50 for residential/farm
- $318 for commercial/multi-residential
- $132.50 for residential/farm
5. Deadlines & Fees at a Glance
- RfR: Free, must be filed within 60–120 days of receiving your notice
- ARB Appeal: Within 90 days of RfR result, or by March 31 of the tax year
- Fees: $132.50 (residential), $318 (commercial), with a small discount for online filing
6. Real-Life Success Stories
- A Mississauga homeowner lowered their CVA by presenting six comparable homes and inspection photos—reducing annual taxes by hundreds.
- A Toronto resident noticed their square footage was overstated. After appeal, their CVA was cut by 12%, saving thousands over time.
7. Build a Strong Appeal: Top Tips
- Use solid comparables: similar age, size, and condition
- Collect evidence: photos, appraisals, permits
- Highlight errors: wrong lot size or property classification
- File early: deadlines are strict
- Stay organized: document every call, form, and submission
8. Common Mistakes to Avoid
- Missing deadlines—automatic denial
- Using weak or irrelevant comparables
- Skipping RfR (mandatory for residential)
- Overlooking classification errors (e.g., residential vs. multi-residential)
- Stopping tax payments during appeal—penalties still apply
9. Final Takeaways
- MPAC assessments are based on a fixed 2016 valuation date but may not reflect today’s reality
- A strong appeal with comps, photos, and reports can reduce your CVA and property taxes
- Residential owners follow a two-step process: RfR, then ARB if needed
- Watch deadlines closely and keep your evidence organized
- A successful appeal can reduce assessments by 10–20%, leading to real tax savings
Source : fulinspace.com
