The City takes action to collect overdue property taxes. The collection protocol for unpaid property taxes is followed in accordance with Chapter 767 of the Toronto Municipal Code. Penalty and interest rates are set by City by-laws, pursuant to the City of Toronto Act, 2006.

Penalty, Interest & Fee Charges

  • Late payment charges are added to all past due taxes at a rate of 1.25 per cent on the first day of default and on the first day of each month thereafter, as long as taxes or charges remain unpaid.
  • Penalty and interest charges on overdue amounts cannot be waived or altered.
  • Fees may also be added when taxes are outstanding.
  • Payments received are applied to the oldest outstanding balance first.

Collection Process

Property tax account statements are issued for accounts with overdue balances. Tax statements are mailed for the interim and final billing cycle.

Interim

  • January 1, with a balance as of December 31. Statement is provided free of charge.
  • Proceeding the March tax due date.
  • Proceeding the May tax due date.

Final

  • Proceeding the July tax due date.
  • Proceeding the September tax due date.

A Statement of Accounts Fee is added to the property tax account.

Payment on the past due amount is required immediately.

Use the Property Tax Account Lookup to view account details or contact a customer service representative.

Payment of property taxes must be received by the due date to avoid interest and penalty charges. Property owners with outstanding balances or charges may be contacted. Property owners are advised to make payment or contact the City regarding the property tax account.

 

Final Notices are issued when previous attempts to collect payment have failed. Once a final notice is issued, property owners have 21 days to make payment. Failure to do so, results in the property tax account being transferred to a bailiff.

Residential Property Owners

  • A Final Notice is issued in April for accounts with a previous year’s outstanding balance.
  • Accounts are issued to a bailiff the beginning of May.

Non-Residential Property Owners

  • A Final Notice is issued in November when accounts have a current year’s outstanding balance.
  • Accounts are issued to a bailiff the beginning of January of the following year.

A Final Notice Fee will be added to the property tax account.

Tax accounts are transferred to the bailiff when property owners fail to respond to the Final Notice. A Notice of Issuance to Bailiff is mailed to the property owner and advises of what property has been issued to a bailiff, the outstanding balance and that all future payments are to be made to the bailiff directly.

Residential Property Owners

  • Accounts with an outstanding balance from the previous year in the amount of $100 or more is assigned to a bailiff.

Non-Residential Property Owners

  • Accounts with any outstanding tax balances are assigned to a bailiff.

A Notice of Issuance to Bailiff Fee is added to the property tax account.

Learn more about Bailiff Tax recovery.

Accounts remaining unpaid and where no suitable payment arrangements are made, a Sale of Land by Public Tender will proceed as prescribed by the City of Toronto Act, 2006. Proceedings begin once taxes have been in arrears for at least two years.

Process

  • The City registers a Tax Arrears Certificate on title of the property.
  • Debtors have one year from the date of registration of the Tax Arrears Certificate to pay the cancellation price (i.e. all of the taxes levied and outstanding, all accrued penalty/interest, fees and costs).
  • Failing payment within that year or not entering into of an extension agreement, requires the Treasurer to proceed with a sale of the property.

Largest Debtor Report

Revenue Services is required to submit a public report to the General Government and Licensing Committee on a semi-annual basis identifying properties owned by a corporation or an individual with tax arrears of $500,000 or more.