Toronto's 2023 spending plan will increase property taxes to their highest rate since amalgamation, costing the average homeowner an additional $233.
The $16.16 billion operating budget, first tabled Tuesday, is based on a 5.5% increase in the residential property tax rate.
However, homeowners will see their bills increase 7% in 2023 due to a previously approved 1.5% increase in the city's construction tax.
I don't want to suspend or cancel more projects because I know that will have negative consequences for our city, in the short term, in the long term and also in much needed jobs. During the campaign I promised to keep property taxes below the rate of inflation, and you will see, when the city's budget is released today, that we are delivering on that promise, with a tax increase of 5.5%, which is below the current inflation rate in Toronto of 6.5%. However, I recognize that it is a significant increase and we are asking people to pay more. I wish it was less, because any increase at this time is difficult for people to take.
Staff says the owner of a median-priced home assessed at $695,268 will pay an additional $233 as a result. The property tax bill for an average-priced home would total $3,569.
Tory's proposed 2023 residential tax increase eclipses the 2.9% introduced in 2022, the highest of his term in office at that time. In 2021, the residential tax increase was 0.7%, the lowest of Tory's time in office.
The city will also see a three percent tax increase for water, wastewater; and solid waste.
Staff says the increase is necessary to offset some of the "unprecedented inflationary pressures" the city will face in 2023.