Municipal governments charge taxes for visible services involved in property maintenance, such as water and snow removal, garbage collection, street policing, and fire protection.
Property taxes are a major source of revenue for local governments in Canada.
In Quebec, the taxes involved in purchasing a property include land transfer taxes, school taxes, and welcome taxes.
Property tax is only one of the three main taxes paid by households, along with income tax and sales tax. It differs from other forms of tax since it is calculated on the value of the asset itself, rather than on financial flow, profit and expenses. Property taxes are levied on the full value of the property and not the owner's equity.
In Quebec, here are the current tax amounts:
- Estimated commercial property taxes per $1,000 of assessment: $37.12
- Estimated residential property taxes per $1,000 of assessment: $8.27
- Commercial-to-residential ratio: 4.49, up 1.9 per cent from last year