Tax Guide
Ontario's Property Tax Reassessment Delay

Understanding Ontario’s Property Tax Reassessment Delay

In 2016, the Municipal Property Assessment Corporation (MPAC) conducted Ontario’s last full reassessment, updating property values to reflect the market at that time. The next reassessment, initially scheduled for 2020, has been delayed—first due to the COVID-19 pandemic and then through subsequent government reviews.

Property taxes continue to be calculated from values set as of January 1, 2016. MPAC continues to issue notices for property changes such as new construction, renovations, and classification updates even while the full province-wide reassessment remains on hold.

Because taxes remain anchored to a 2016 valuation date, shifts in market value since then can distort relative tax share.

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Why the Reassessment Cycle Matters for TAXPAYERS

Under Ontario’s normal assessment cycle, property values are updated periodically to reflect market conditions. This keeps the tax base aligned with current values and supports a fair distribution of the levy across taxpayers. A reassessment does not increase the total amount municipalities collect; it redistributes each taxpayer’s share based on how values changed relative to one another. Regular reassessments also reduce inequities and help prevent one‑time spikes by smoothing changes over a cycle.

What this means for owners:

• Fair share: When values drift apart, some properties carry more (or less) than their proportional share; reassessment realigns that balance.
• Predictability: More frequent updates reduce the risk of large, catch‑up shifts after long pauses.
• Better evidence: Current assessments are easier to evaluate and, if necessary, challenge using recent market and operating data.

Because the cycle is paused, these benefits are deferred. The next section explains how that pause can affect budgeting, competitiveness, and decision making for your portfolio.

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Key Risks of Ontario’s Reassessment Freeze

Ontario’s reassessment delay isn’t just a policy pause; it’s a source of long-term tax risk. The longer the freeze continues, the greater the divergence between assessed values and market reality, and the more likely it is that property owners will face disruptive tax changes when reassessment resumes.

Here are the most significant risks to monitor and manage now:

FUTURE TAX SPIKES

Properties that have appreciated since 2016 are accruing tax exposure that won’t be reflected until reassessment resumes. When that happens, years of market growth will be captured all at once—creating sharp tax increases for some owners.

• Compounding risk: The longer the freeze, the more values diverge—and the more corrections are compressed into a single cycle.
• Budget shock: Even phased-in increases can strain budgets and covenants, especially if they weren’t modeled in advance.
• Little time to react: By the time new values are released, appeal timelines may be tight and preparation windows narrow.

Early modeling and engagement are essential for projecting exposure and building a defensible strategy before values are finalized.

DISTORTED COMPETITIVE POSITIONING

Outdated assessments can skew occupancy costs, leasing economics, and investment decisions, especially compared to jurisdictions with more current tax baselines.

• Tenant concerns: Recovery negotiations may become harder if visible property conditions don’t align with tax charges.
• Site selection risk: Tenants and investors may prioritize regions with clearer tax forecasting and fewer surprises.
• Capital allocation impacts: Tax uncertainty can delay projects, shift capital to lower-risk geographies, or suppress returns on reinvestment.

Understanding your position relative to peer markets is key to navigating these dynamics effectively.

TRANSACTIONAL AND STRATEGIC BLIND SPOTS

Relying on a 2016 value baseline introduces risks in deals, underwriting, and long-range planning, including:

• Skewed pro formas: Using outdated assessments in models can distort yields and cash flows in early hold years.
• Due diligence friction: Buyers and lenders may flag tax variance risk as a concern, especially if future increases haven’t been factored in.
• Impaired strategy: Without reassessment timing certainty, it’s harder to plan disposals, renovations, or repositioning tied to property tax performance.

A proactive review of your tax baseline helps you adjust assumptions and mitigate risk in strategic planning.

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How to Reduce Your Property Taxes Before the Reassessment

Even though Ontario’s reassessment remains on hold, property owners still have tools to reduce current-year tax liabilities if evidence supports it.

In many cases, assessments based on 2016 values no longer reflect a property’s current market or economic condition. Owners who have experienced sustained vacancy, redevelopment, or operational change may now be over-assessed relative to actual performance.

There are three main paths to explore:

• File an appeal to correct an overvaluation
• Apply for in-year municipal tax reductions based on specific events
• Capture any eligible credits or incentives linked to capital activity

Each path is driven by evidence and can lead to real savings before reassessment returns.

File an Appeal to Correct Overvaluation

If market evidence indicates your property’s value is below its 2016‑based assessment, you can file an appeal to correct valuation and reduce taxes. A successful appeal can generate immediate savings rather than waiting for a province‑wide reassessment.

You should consider an appeal if or when any of the following trigger events occur:

• Acquisitions, dispositions, or reorganizations: Transactions that reveal a gap between supported market value and the current assessment.
• Capital changes or impairments: Renovations, reconfigurations, or functional obsolescence that affect utility or marketability.
• Income or tenancy changes: Vacancy, lease-up delays, or material rent roll shifts that reduce stabilized NOI.
• Market movements: Caprate expansion, sector specific downturns, or localized oversupply supported by sales or income evidence.
• Physical or legal constraints: Environmental conditions, easements, access limitations, or zoning/use restrictions that impact value.

Note: Appeals are evidence driven. Evaluate your current assessment promptly after a trigger event to preserve rights.

Apply for In-Year Municipal Tax Relief (Tax Applications)

Under the Municipal Act, municipalities accept annual applications for property tax relief when a property experiences a change in use, undergoes renovations, or suffers damage/demolition. These applications don’t challenge valuation; they provide event‑based tax relief that can lower the affected year’s taxes without waiting for a full reassessment.

Capture Eligible Credits and Incentives

Identify and pursue available credits and incentives tied to capital projects, location‑based programs, or efficiency upgrades—and review for missed opportunities that may still be actionable. Coordinating these efforts with appeals and municipal applications ensures you maximize benefits without duplicating effort.

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Preparing for What’s Next

When Ontario’s reassessment finally resumes, the volume of appeals will spike—creating inevitable backlogs and long wait times. Businesses that prepare now will avoid the scramble and position themselves for faster, more favorable outcomes.

Why early engagement matters:

• Beat the rush: Advisors who know your portfolio can act immediately when notices drop, while others wait in line.
• Protect cash flow: Modeling potential tax increases now helps you build contingencies and avoid budget shocks.
• Unlock hidden savings: A proactive review can surface appeal opportunities, municipal relief, and incentives that disappear once deadlines pass.
• Strengthen your evidence: Gathering operating data, rent rolls, and property change documentation early ensures your case is ready before the docket fills.

Early partnership isn’t just about avoiding delays—it’s about controlling risk and capturing value while others react. Acting now means you enter the next reassessment cycle with a clear strategy, documented evidence, and an advisor ready to execute.

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