The City takes action to collect overdue property taxes.

Penalty, Interest & Fee Charges

  • Late payment charges will be added to all past due taxes at a rate of 1.25% 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.

Arrears Collection Process

You will receive a property tax account statement if your account has an overdue balance. Tax statements are mailed for the:

Interim Billing

  • January 1st, with a balance as of December 31st, statement provided free of charge.
  • After the March tax due date.
  • After the May tax due date.

Final Billing

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

If a statement is issued to you, a Statement of Accounts Fee will be added to your property tax account.

Payment on the past due amount(s) is required immediately.

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

If your account has outstanding taxes or charges, you may be contacted by a Revenue Collector to arrange payment in full or a firm, suitable payment arrangement.

If you are issued a Final Notice you will have 21 days to pay your taxes, or enter into a firm, suitable payment arrangement with the City, or your account will be issued to a bailiff for collection.

For Residential Property Owners

  • In April, a Final Notice will be mailed to you if your account has a previous year’s outstanding balance.
  • If you fail to respond to the Final Notice, your account will be issued to a bailiff the beginning of May.

For Non-Residential Property Owners

  • In November, a Final Notice will be mailed to you if your account has a current year’s outstanding balance.
  • If you fail to respond to the Final Notice, your accounts will be issued to a bailiff the beginning of January of the following year.

If a Final Notice is issued to you, a Final Notice Fee will be added to your property tax account.

For Residential Property Owners

  • If you fail to respond to the Final Notice and have outstanding taxes from the previous year(s) in the amount of $100 or more, your account will be assigned to a bailiff.
  • A Notice of Issuance to Bailiff will advise you that outstanding tax balance(s) have been sent to a bailiff, and that any further payments on the outstanding amount must be made to the bailiff directly.

For Non-Residential Property Owners

  • If you fail to respond to the Final Notice, the City will send you a Notice of Issuance to Bailiff. This notice will advise you that outstanding tax balance(s) have been sent to a bailiff, and that any further payments on the outstanding amount must be made to the bailiff directly.

If a Notice of Issuance to Bailiff is sent to you, a Notice of Issuance to Bailiff Fee will be added to your property tax account.

Learn more about Bailiff Tax recovery.

If your tax account remains unpaid or no suitable payment arrangement made, the City commences Municipal Tax Sale Proceedings as prescribed by the City of Toronto Act, 2006. Municipal Tax Sale proceedings can begin once taxes have been in arrears for at least three years.

Municipal Tax Sale Process

Step 1

The City registers a Tax Arrears Certificate on title of the property.

Step 2

You, as the debtor, have one year from the date of registration of a Tax Arrears Certificate on title of the property to pay the cancellation price (which includes all of the taxes levied and outstanding, all accrued penalty/interest, fees and costs).

Step 3

Failing payment within that year, or the entering into of an extension agreement, the Treasurer is required to proceed with a sale of the property through Sale of Land by Public Tender.

Largest Debtor Report

The Director of Revenue Services is required to:

  • submit a public report to the Government Management Committee on a semi-annual basis identifying those properties owned by a corporation with tax arrears of $500,000 or more
  • submit a report to Committee identifying those properties owned by individuals with tax arrears of $500,000 or more

City of Toronto Act & Municipal Code

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.