If you own a home in Markham, property taxes are one of the most important ongoing costs of homeownership. Property taxes fund essential services such as schools, road maintenance, emergency services, libraries, and community infrastructure. Whether you are buying your first home or already own property in Markham, understanding how property taxes work can help you plan your finances more effectively.
For buyers and homeowners navigating the Markham real estate market, working with knowledgeable professionals like Michael John Lau and Neeraj Moolchandani of the Kaizen Real Estate Team can provide valuable insight. Their team regularly helps clients understand the full cost of homeownership in Markham, including property taxes, market trends, and long-term investment potential when purchasing real estate in the community.
How Property Taxes Are Calculated in Markham
Property taxes in Markham are calculated using two main factors:
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The assessed value of your property
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The municipal property tax rate
The assessed value of your home is determined by the Municipal Property Assessment Corporation (MPAC). MPAC evaluates properties across Ontario to determine their market value for taxation purposes.
The formula used is:
Property Tax = Assessed Property Value × Property Tax Rate
For example:
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Home assessed value: $1,200,000
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Property tax rate: ~0.60%–0.70% (approximate range)
Estimated annual tax:
$7,200–$8,400 per year
Actual rates vary each year slightly depending on city budgets and regional funding requirements.
What Property Taxes Pay For
Property taxes collected in Markham help fund several important public services including:
Municipal Services
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Fire services
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Road maintenance
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Garbage and recycling collection
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Parks and recreation
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Libraries
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City planning and infrastructure
Regional Services (York Region)
Markham is part of York Region, so a portion of property taxes goes toward regional services such as:
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Public transit
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Policing
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Public health
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Waste management
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Regional roads
Education Taxes
Another portion funds Ontario’s public education system through school boards.
Average Property Taxes in Markham
While exact taxes vary depending on the home’s assessed value, typical property taxes for Markham homeowners in 2026 fall within these ranges:
| Home Price | Estimated Annual Property Tax |
|---|---|
| $900,000 | $5,500 – $6,500 |
| $1,200,000 | $7,200 – $8,400 |
| $1,500,000 | $9,000 – $10,500 |
| $2,000,000 | $12,000+ |
Because many homes in Markham exceed $1 million, property taxes are an important factor when calculating your monthly housing budget.
When Property Taxes Are Paid in Markham
Homeowners in Markham typically pay property taxes in four installments throughout the year.
Common payment schedules include:
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February
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April
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June
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September
Many homeowners choose to have property taxes included in their monthly mortgage payments, where the lender collects taxes and pays the city on the homeowner’s behalf.
What Can Affect Your Property Taxes
Several factors can influence your property taxes over time.
1. Property Value Increases
If the value of homes in Markham increases significantly, your assessed value may rise when reassessed by MPAC.
2. Home Renovations
Major renovations such as:
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Home additions
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Basement apartments
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Large upgrades
may increase your property’s assessed value.
If you plan to renovate after buying a home, it’s helpful to understand which upgrades add the most value. Our guide on Top Renovations That Add Value to Your Markham Home explores improvements that offer the best return on investment.
3. City Budget Changes
Each year, the city adjusts its tax rates depending on funding needs for infrastructure, community programs, and services.
Tips for Markham Homeowners Managing Property Taxes
Here are a few smart strategies homeowners use:
Budget monthly
Divide your annual property tax by 12 to understand the monthly cost.
Review your MPAC assessment
If you believe your assessed value is too high, you may request a review.
Consider taxes when buying
Two homes with similar prices may have different property taxes depending on assessed value and property type.
Understanding these costs is especially important for buyers entering the Markham real estate market for the first time.
Markham Property Tax FAQ
Are property taxes high in Markham?
Property taxes in Markham are considered moderate compared to many Ontario cities, especially relative to Toronto where municipal taxes are structured differently.
Do property taxes increase every year?
Property taxes may increase depending on city budgets and reassessment values, but increases are typically gradual rather than sudden.
Can property taxes affect mortgage approval?
Yes. Lenders include property taxes when calculating your total housing expenses, which can influence how much you qualify to borrow.
Do new homes in Markham have higher property taxes?
New homes may initially have lower assessed values, but once MPAC reassesses the property after construction, the property tax amount may increase to reflect market value.
Final Thoughts
Understanding property taxes is an essential part of homeownership in Markham. While taxes help fund important services that keep the community running smoothly, they also represent a significant part of the total cost of owning a home.
If you are planning to buy a home in Markham or want to better understand the local housing market, working with experienced professionals can make the process much easier.
Michael John Lau and Neeraj Moolchandani of the Kaizen Real Estate Team help buyers and homeowners navigate the Markham real estate market with expert guidance on pricing, neighbourhood trends, and the full cost of homeownership.
Contact Kaizen Real Estate Team
📞 Call 647-370-8885
📧 Email [email protected]
🌐 Visit www.kaizenrealestate.ca
🗓️ Book a meeting today
Whether you are buying, selling, or investing in Markham real estate, their team is ready to help you make confident decisions in today’s market.