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Oakville Property Tax Rates Explained: Why You Pay Less Here Than in Toronto
Tuesday Dec 30th, 2025
Quick Answer: The Real Cost of Ownership
Are Oakville property taxes actually lower than Toronto's? It's a common misconception. While Oakville's 2024 annual tax rate (approx. 0.80%) is technically higher than Toronto's (approx. 0.72%), the Total Cost of Ownership is often lower in Oakville. This is because Toronto buyers face a Double Land Transfer Tax (LTT), adding roughly $26,000 to the upfront cost of a $1.5M home—equivalent to paying two full years of property taxes upfront.
When clients come to us looking at homes in $1.5 million range, the first question is often about monthly carrying costs. While Toronto has historically boasted the lowest mill rates in Ontario, aggressive hikes in 2024 (9.5%) and proposed hikes for 2025 (6.9%+) are closing the gap.
Combined with the massive upfront cost of Toronto's municipal land transfer tax, Oakville remains a tax haven for savvy buyers.
The "Hidden Tax" in Toronto
If you buy a home in Oakville, you pay the Ontario Provincial Land Transfer Tax. That's it.
If you buy a home in Toronto, you pay the Provincial tax PLUS a matching Municipal Land Transfer Tax. On a standard detached home, this effectively doubles your closing costs. For families moving from the city to residential homes in Oakville, this saving alone can fund a renovation or furnish the entire house.
Comparison: The $1.5 Million Home
Let's look at the numbers for a typical detached home assessed/sold at $1.5 Million in 2025.
| City | Est. Tax Rate (2025) | Annual Tax Bill | Upfront Land Transfer Tax | 5-Year Total Cost |
|---|---|---|---|---|
| Oakville | ~0.83% | $12,450 | $26,475 | $88,725 |
| Toronto | ~0.75% | $11,250 | $52,900 | $109,150 |
| Mississauga | ~1.03% | $15,450 | $26,475 | $103,725 |
*Note: Annual tax bills are estimated based on market value for comparison. Actual bills are based on MPAC assessed values, which lag behind market prices.
📈 Toronto's Tax Hikes
Toronto raised property taxes by a historic 9.5% in 2024 and is proposing another ~7% for 2025. The gap between Toronto and Oakville is shrinking rapidly. Read more in our Commuter Guide.
🏛 The MPAC Factor
Remember: You are taxed on your home's 2016 value, not today's price. If you buy a home for $1.5M today, its assessed value might only be $900k, keeping your monthly bill lower. Use our Mortgage Calculator to estimate payments.
Where Does Your Money Go?
In Oakville, you get what you pay for. The town is renowned for its immaculate public spaces, from the manicured gardens of Glen Abbey to the waterfront trails of Old Oakville. The tax base is well-supported by a robust commercial sector, keeping residential increases stable compared to neighbouring Peel Region.
The Verdict
If you look strictly at the annual tax rate, Toronto looks slightly cheaper. But real estate is a long-term game. When you factor in the $26,000+ savings on Land Transfer Tax and the superior municipal services, Oakville wins the value calculation hands down.
Still unsure about the costs? Let us provide a detailed breakdown for your specific budget. Contact us today.
Frequently Asked Questions
Why is my MPAC assessment lower than my purchase price?
MPAC (Municipal Property Assessment Corporation) assessments are currently frozen at January 1, 2016 values due to provincial delays. This means your tax bill is based on what your home was worth years ago, not what you paid for it today.
Is there a stormwater fee in Oakville?
Yes. Oakville is phasing in a dedicated stormwater fee to maintain drainage infrastructure. This is a separate line item from your property tax, ensuring that funds are used specifically for flood prevention and environmental protection.
Does Oakville have a Vacant Home Tax?
Currently, Oakville does not have a Vacant Home Tax like Toronto or Hamilton. This makes it a more attractive option for investors or snowbirds who may leave their property empty for portions of the year.
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