If you're a homeowner, buyer, or investor in Markham, Ontario, property taxes are about to shift and it's time to plan accordingly. For 2025, the City of Markham has approved a 3.88% property tax increase, which equates to an additional $53.54 annually for the average residential property owner. While the hike may seem modest, its ripple effects could influence home affordability, buyer behavior, and long-term property values.
Let’s break down what this tax change means, why it's happening, and how it could impact you.
💰 What Is the New Property Tax Rate in Markham for 2025?
Markham’s 2025 operating and capital budget totals $674.7 million, and the 3.88% increase will help fund:
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Local infrastructure upgrades
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Public transit enhancements
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Emergency and community services
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Environmental and sustainability projects
For a homeowner with a property assessed at the city’s average, this change means paying about $53.54 more per year. That brings the average annual tax bill to just under $1,430 for the city portion alone, not including York Region and education taxes
🏘️ Why Is Markham Raising Property Taxes?
Markham is investing in its future. The city is growing, and with that comes increased demand for public services and infrastructure. The 2025 tax increase supports:
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Road repairs and traffic management
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Parks and recreational facility improvements
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New tech initiatives for better service delivery
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Affordable housing strategies and planning
City officials emphasized that despite the 3.88% increase, Markham still boasts the lowest cumulative property tax increase over the past 20 years in the Greater Toronto Area (GTA), a testament to responsible financial planning.
🔎 How Does This Affect Real Estate in Markham?
From a real estate perspective, this tax hike can have both short- and long-term effects:
- Buyer Psychology
Prospective buyers may consider property taxes in their affordability calculations. Even a small increase can push monthly budgets slightly higher, especially with today’s interest rate environment.
2. Investor Decisions
Landlords and investors typically factor in property taxes when calculating ROI. Higher expenses may shift strategies or raise rents to offset costs.
3. Home Value Stability
If property taxes rise without a perceived increase in value or service, some buyers may look to neighboring communities. However, in Markham’s case, the increase is paired with tangible infrastructure improvements, which often strengthen home values over time.
📅 Key Dates and Deadlines
Markham’s residential property tax installment dates for 2025 are expected to follow a similar schedule to 2024:
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July 4, 2025
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August 5, 2025
Residents should check their mailed tax notices or visit the city’s website for exact dates as the year progresses.
🔧 How to Prepare as a Homeowner
Here are a few smart steps to stay ahead of the tax increase:
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Review your MPAC property assessment, errors can lead to overpaying taxes.
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Set aside an extra $5/month now so the increase is barely noticeable when it hits.
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Evaluate available tax relief programs like the Low-Income Seniors Property Tax Assistance Program.
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Speak to your real estate professional if you're considering selling or buying in 2025 to factor in this change.
Markham’s Taxes Are Going Up, But So Is Its Value
Markham’s slight bump in property tax isn’t just a financial move, it’s a strategic investment in a growing city. With a consistent ranking as one of Ontario’s most efficient municipalities, Markham continues to offer value to residents and investors alike.
For more details, you can read the full City of Markham Budget 2025 or visit YorkRegion.com for news coverage on local government decisions.
📲 Questions About Buying or Selling in Markham?
Whether you're buying your first home or adding another investment property to your portfolio, it's crucial to work with a local expert who understands the real cost of ownership in 2025 and beyond.
Let’s connect or book a consultation with us here!