Exemption for Seniors and Persons with a Disability

The increase in assessed value resulting from renovations or modifications made to an existing home to accommodate the needs of a senior (aged 65 or older) or person with a disability is exempt from property taxation.  

Example:  

• Previous pre-renovation value: $185,000 
• New post-renovation value: $200,000 
• Tax-exempt portion: The difference between the new and previous values is $15,000 
• Taxable portion: $185,000 

Once the renovated or modified space in the home starts to be used, a notice will be issued to reflect the increase due to the improvements on the property, with the taxable portion as well as the amount that is eligible for the tax exemption. The property owner remains responsible for taxes based on their taxable portion. 

To recognize that custom features to accommodate a senior (age 65 or older) or a person with a disability may require a larger floor area and modifications such as wider doorways, hallways, etc., than would otherwise be included in the new home, the exemption is set at 10% of the assessment. 

For properties with large acreage, the 10% exemption only applies to the residential building plus up to one acre of land. 

If there are additional buildings on the property, discretion will be used to determine whether or not the additional buildings are being used to help accommodate the senior or person with a disability. Where evidence supports that they are not, those buildings will not be included in the calculation for the exemption. 

Example:  

• The property includes 10 acres of land with a house, an attached garage, and a 1,000-square-foot storage shed. 
• Only one acre of land, the house, and the garage are used to provide a home for a senior or a person with a disability. 
• The shed and nine acres of land are not used for residential purposes, so they are not included in the calculation.  
• Total assessment value: $200,000 
• Assessment of 1 acre plus house and garage: $160,000 
• Tax-exempt portion (10% of $160,000): $16,000 
• Taxable portion: $200,000 - $16,000 = $184,000  

Once the custom-built residential home starts to be used, a Property Assessment Change Notice will be issued to reflect the increase due to the improvements on the property, with a taxable portion as well as the 10% that is eligible for the exemption. The property owner remains responsible for taxes based on their taxable portion. 

Only the assessed value of the garden suite used to provide accommodation for a senior (65 or older) is exempt from property taxation.  

Example:  

• Previous property value: $185,000 
• Value after garden suite addition: $200,000 
• Exempt portion (value of garden suite): The difference between the new and previous values is $15,000 
• Taxable portion: $185,000 

The above example assumes that a garden suite has been placed on the property, and a Property Assessment Change Notice will be issued to increase the property’s value to reflect the increase in assessment due to the garden suite's placement. This increase will be reflected as exempt from property taxation and will become effective once the garden suite starts to be used.  

1.  
2. Apply for the tax exemption  
   • Property owners must notify MPAC when a home is renovated, modified, or built to accommodate a senior (aged 65 or older) or a person with a disability. 
   • Property owners must provide details that show the improvements were necessary to accommodate the needs of a senior or person with a disability so they wouldn’t need to live in a residence with on-site care. 
3. Review the application 
   • MPAC reviews the application to ensure the information is current and will inspect the property to determine if it qualifies for the exemption. 
4. Confirm eligibility and the affidavit to be completed  
   • MPAC provides an affidavit for the property owner to complete, ensuring the property meets all the legal requirements for the exemption. 
5. Exempt portion added to Tax Roll and Assessment Roll 
   • MPAC will either update the property’s assessment to reflect an improvement by issuing a Property Assessment Change Notice or update the property for the upcoming taxation year which will include the exempt portion. 
6. Confirmation Letter 
   • Every two years, MPAC will send a confirmation letter asking the property owner to confirm the property's eligibility for the tax exemption portion in the assessment. If we don’t hear back, you may receive a follow-up letter. If the property owner doesn’t return their eligibility confirmation form or the senior or person with a disability no longer lives in the home, the tax exemption will be removed.  
   • A response is required by the due date in the confirmation letter, otherwise, the exemption will be removed. 

1. Apply for the tax exemption  
   • Property owners must notify MPAC when a by-law or order of the Planning Act provides the details for the exemption of a garden suite that has been satisfied. 
2. Review the application 
   • MPAC reviews the application to ensure the information is current and will inspect the property and review the by-law or order to determine if the garden suite qualifies for the exemption. 
3. Exempt portion added to Tax Roll and Assessment Roll 
   • If the garden suite qualifies for exemption, MPAC will either update the property’s assessment to reflect an improvement by issuing a Property Assessment Change Notice or update the property for the upcoming taxation year which will include the exempt portion. 
4. Confirmation Letter 
   • Every two years, MPAC will send a confirmation letter asking the property owner to confirm the property's eligibility for the tax exemption portion in the assessment. If we don’t hear back, you may receive a follow-up letter. If the property owner doesn’t return their eligibility confirmation form or the senior or person with a disability no longer lives in the home, the tax exemption will be removed.  
   • A response is required by the due date in the confirmation letter, otherwise, the exemption will be removed.