For everyone's benefit, property tax
rates are irrelevant. The amount of tax paid, which is the more relevant measure, depends on property valuation. Admittedly, Toronto's residential households pay less property tax than most Ontario municipalities.
However, I think it's important to question the premise that all municipalities across Ontario should have equal or even similar residential property taxes.
Population density per square kilometre:
Source
Hamilton: 509 (Yes, it has a large downtown, but it has a massive area)
Oakville: 1,538
Toronto: 4,427
Proportion of single family homes:
Source,
Source
Hamilton: 56%
Oakville: 58%
Toronto: 39%
Population growth rates (2001-2021):
Source
Hamilton: 16.1%
Oakville: 47.7%
Toronto: 12.6%
First, It seems fairly obvious that delivering basic services to Hamilton and Oakville residents, including building and maintaining roadways, sewers, collecting garbage, etc. will be much more expensive on a per capita basis than in Toronto due to lower population densities and a higher percentage of single family homes. A rapidly expanding population requires higher capital expenditures on new infrastructure. I am willing to bet that if you did a regression analysis, these would be strong predictive factors for property tax rates.
Second, the comparison depends on what services are delivered to residents and what expenditures may be required our of property tax revenues. As noted above, services like garbage collection in Toronto are billed separately from property taxes (to the tune of $430 million per year). High-rise buildings are required to contract for private garbage collection, which is charged to owners or tenants through condo fees or rent. On the other side, Toronto effectively subsidizes regional transit through the TTC's operating budget, maintains the largest shelter and supportive housing system in Canada, and manages by far the largest proportion of new immigrants and refugees.
Third, the comparison depends on what other fees and taxes are charged to businesses or residents. Toronto's commercial property tax ratio is among the highest in the province. Toronto is the only municipality in Ontario with a Land Transfer Tax (representing 5.9% of its total revenue, which if added to property taxes would increase them by 20%), a Municipal Accommodation Tax, a Third Party Sign Tax, and a Vacant Home Tax (recently increased from 1% to 3% of value). Finally, Toronto's development charges on new homes are among the highest in the province (
Source).
All of this to say that comparing the residential property taxes among Ontario municipalities and saying Toronto households are undertaxed or advantaged is a facile position. It requires a detailed accounting of the factors listed above, which I am willing to bet would make the total taxes paid by Torontonians seem much fairer.
Ultimately, I believe Toronto has an obligation to increase its residential property taxes in an effort to pay for urgently needed services, but it's budget shortfall cannot realistically or fairly be made up by increased property taxes. The City needs better funding or revenue tools from other levels of government and the recognition that the situation is not comparable to other municipalities in Ontario.