Torontonians face heavier tax burden than politicians claim
Toronto, ON: The Canadian Taxpayers Federation is calling on Toronto Mayor Olivia Chow to freeze property taxes and user fees ahead of Toronto’s 2024 budget because Torontonians pay higher municipal taxes than many of Ontario’s largest municipalities.
“For years, Toronto politicians have pushed the myth that Toronto’s tax burden is lower than neighbouring cities,” said CTF Ontario Director Jay Goldberg. “But once property taxes, other taxes and user fees are factored into the equation, Torontonians face a higher tax burden than those in other major Ontario municipalities.”
Budgets presented in 2023 by Toronto, Ottawa, Hamilton, London and Windsor show that Toronto taxpayers have the heaviest per capita municipal tax burden. Toronto taxpayers are the only taxpayers in Ontario who pay a municipal land transfer tax, which costs taxpayers nearly $1 billion per year.
“The average Toronto resident will pay $3,375 in taxes and user fees in 2023 and that’s $1,155 more than the average tax burden carried by residents in nearby Hamilton,” said Goldberg. “Tax-happy Toronto politicians aren’t telling taxpayers the truth when they claim that Toronto taxpayers have a low tax burden.”
Chow has yet to announce her proposed property tax increase for 2024, but she has already led council in adopting a more costly land transfer tax and has asked Ontario Premier Doug Ford for permission to impose a municipal sales tax. Chow is also considering a number of other measures to increase Torontonians’ tax burden, including a commercial parking tax.
“Chow needs to understand that Torontonians are taxed to the max and cannot afford to hand even more money over to Toronto’s politicians,” said Goldberg. “Chow should be looking for ways to lower the tax burden, not make it worse. New taxes and more tax hikes should be taken off the table.”
Tax Burden Per Capita, Large Cities
|
City |
Total Tax Burden |
Population (2021 Census) |
Tax Per Capita |
|
$9,430 million |
2,794,356 |
$3,375 |
|
|
$3,212 million |
1,017,449 |
$3,157 |
|
|
$1,264 million |
569,353 |
$2,220 |
|
|
$1,103 million |
422,324 |
$2,612 |
|
|
$596 million |
229,600 |
$2,695 |
Note: Only cities that are not members of regional governments were examined. Cities that are members of regions pool some revenue and costs with neighbouring municipalities.
Tax Burden by Municipality, Large Cities
|
City |
Property Tax |
User Fees |
Other Tax |
Total Tax Burden |
|
$4,910 million |
$2,630 million |
$1,890 million |
$9,430 million |
|
|
$2,231 million |
$941 million |
$40 million |
$3,212 million |
|
|
$1,050 million |
$178 million |
$36 million |
$1,264 million |
|
|
$932 million |
$56 million |
$115 million |
$1,103 million |
|
|
$415 million |
$120 million |
$61 million |
$596 million |
Note: Transit ticket revenue was removed from user fee total for each municipality.