Toronto receives just 31 percent of operating revenue from property taxes, lowest among major Canadian cities

Toronto's municipalities rely far less on property taxes than major cities elsewhere in Canada, according to research from the C.D. Howe Institute examining fiscal structures across the country.

The analysis shows that Toronto derives just 31 percent of its municipal operating revenues from property taxes — a significantly lower share than Halifax and Montreal, which carry the highest reliance on property-tax income among major Canadian municipalities studied.

The C.D. Howe Institute notes that development charges serve as an additional revenue source for municipalities, which can limit increases in property tax rates for homeowners. The research suggests that understanding these varying fiscal models is critical for evaluating municipal sustainability and the pressures facing cities across Canada.

The institute's broader 2023 report card on Canadian municipalities found mixed results on fiscal transparency and accountability. Quebec City and Richmond earned top grades for clarity, completeness and timeliness in their budget presentations, while Hamilton, London and Windsor received failing grades for multiple transparency and timeliness problems.

The source does not break down the specific property-tax percentages for Halifax and Montreal, nor does it list all municipalities analyzed or provide guidance on how Canadian cities should rebalance their revenue models.