Why Markham Homeowners Benefit From One of Ontario's Lowest Tax Rates

Why Markham Homeowners Benefit From One of Ontario's Lowest Tax Rates

Every time cities announce their annual budgets, the first reaction most homeowners have is to look straight at the tax increase. Markham’s approved 3.9% hike for 2026 naturally generated conversations, and some homeowners wondered whether the city is becoming more expensive to live in. But when you step back and compare Markham’s property tax burden with the rest of the GTA, using the actual 2025 tax-rate numbers, the picture looks very different. Markham still remains one of the most competitive municipalities in the region. And once you understand how property taxes actually work in Ontario, it becomes clear why such hike every year is necessary.

People comparing properties in different GTA cities usually focus on prices, schools, commuting, or lifestyle. But property tax is one of the most misunderstood parts of homeownership. Many assume that a higher-priced city automatically has higher taxes, or that the lowest tax rate must mean the lowest tax bill. In reality, municipal taxation is designed around budget needs, not home prices. Every municipality in Ontario needs to fund the same essential services, such as policing, fire, EMS, road maintenance, parks, and municipal operations, and salaries for these services don’t vary much from city to city. So the question is never "which city charges more," but rather "how does each city meet its revenue requirements based on the assessed value of its housing?"

Cities with higher average property values can apply a lower tax rate, while cities with lower average prices need a higher rate to raise the same revenue. This explains why Toronto historically appeared on "low tax rate" lists: high home values allowed the city to charge a lower rate and still fund its services. But today’s numbers tell a more updated story. In 2025, Toronto’s residential tax rate sits at 0.754087%, higher than Markham (0.700278%), higher than Vaughan (0.732687%), and higher than Richmond Hill (0.737010%). This means Toronto is no longer the "low-tax-rate leader" it once was.

Once you compare the full GTA picture, the differences become even clearer. In 2025:

  • Markham: 0.700278%
  • Richmond Hill: 0.737010%
  • Vaughan: 0.732687%
  • Toronto: 0.754087%
  • Stouffville: 0.829590%
  • Oakville: 0.834632%
  • Aurora: 0.850893%
  • Newmarket: 0.891649%
  • Mississauga: 1.033864%

These numbers immediately show why Markham stands out. Even with some of the highest home values in the region, its tax rate remains on the lower end of the spectrum, and significantly lower than several other high-income municipalities like Oakville, Aurora, and Newmarket. Oakville, in particular, surprises many people. Despite its high home values and affluent profile, its full residential tax rate is not low, likely due to the cost of maintaining a large geographic area and a broad infrastructure network.

Looking at these differences in the real world helps put things in perspective. A home assessed at roughly $1 million in Markham would generate around $7,000 in annual taxes. The same assessed value in Oakville or Aurora jumps closer to $8,300–$8,500, and in Newmarket it gets near $8,900. In Mississauga, you move into the $10,000+ range. Even small variations in tax rates make a meaningful difference over time, especially for long-term owners, investors, or people carrying multiple properties.

It also helps to understand how MPAC assessments fit into the picture. When assessment values increase, the tax rate is supposed to decrease in proportion, a revenue-neutral adjustment, unless the municipality’s budget itself goes up for reasons like inflation or infrastructure investment. So tax bills shouldn’t climb just because your home value rises. They rise when the city requires more revenue to maintain or expand services.

This is where Markham’s fiscal approach becomes an advantage. For more than 20 years, the city has consistently kept its tax increases among the lowest in the GTA. Even the recent 3.9% increase translates into about $55 more per household, which is modest when compared to municipalities facing 5% to 7% increases annually. The stability matters because it gives homeowners predictability. It also helps offset Markham’s strong property values, balancing out the overall carrying cost.

For buyers comparing cities, this balance often tilts the decision. Between two similarly priced homes, one in Markham and one in a municipality with a much higher tax rate, Markham usually results in a lower annual cost of ownership, even if the purchase price is slightly higher. Investors feel the difference even more, since property tax directly affects rental cash flow and long-term hold strategies.

Of course, tax outcomes vary based on assessed value, property class, and specific neighbourhoods. High-end homes feel rate differences more sharply, while commercial and industrial properties operate under entirely different tax classifications. But for the typical homeowner evaluating the GTA landscape, Markham strikes one of the strongest value positions: a city with excellent schools, modern neighbourhoods, stable long-term demand, and a municipal government that has historically kept tax burdens manageable while still investing in infrastructure, parks, and flood protection.

If you're comparing different GTA municipalities, it helps to look beyond which rate "looks low" and instead consider the full picture: your assessed value, the city’s long-term budgeting patterns, and the stability of annual increases. Markham’s advantage is not just the number printed on the tax-rate chart, it’s the consistency, planning, and value you receive in return. That’s why, for many families and investors, Markham continues to feel like a smart, balanced, and financially sound place to build long-term real estate wealth.

If you’d like help interpreting tax numbers for a specific property or comparing cities for your next move or investment, I’d be happy to walk you through the details anytime.



WhatsApp Chat