Exemption for Seniors and Persons with a Disability
The Seniors and Persons with a Disability Property Tax Exemption provides financial relief on a portion of a property’s value if improvements were made to a residential home to accommodate a senior (aged 65 or older) or a person with a disability. This may include renovations or modifications made to an existing residential home, construction of a custom-built home, or use of a temporary garden suite with a property-specific by-law or order under the Planning Act.
This exemption offers financial relief to property owners, enabling seniors and persons with disabilities to remain in their chosen living spaces.
To apply, property owners must submit an application to MPAC. If approved, a portion of the property's value will be exempt from property tax.
Does your property qualify for a tax exemption?
If you own a property that houses a senior (aged 65 or older) or a person with a disability, you may qualify for a property tax exemption on a portion of your property. Review the scenarios below to see if your property qualifies. If one of the scenarios applies, review the eligibility criteria outlined below and learn how to apply for the tax exemption.
Scenario 1
Improvements were made to an existing residential home, or a new home was constructed specifically to accommodate a senior (aged 65 or older) or a person with a disability, and:
- The senior or person with a disability lives in the home as their personal residence.
- If not for the improvements, the senior or person with a disability would have to live in a residence where on-site care would be provided.
- Renovations or modifications were made to the property after May 15, 1984.
- The property is classified as residential, with no more than three residential units.
- You are not operating a business that provides care services to seniors or persons with a disability.
Scenario 2
The property has a garden suite that is used by a senior (aged 65 or older) and:
- The senior lives in the garden suite as their personal residence.
- The senior is a family member of the property owner.
- The property owner has their personal residence on the property.
- The garden suite is a temporary, portable, one-unit detached structure with bathroom and kitchen facilities, as defined in the Planning Act.
- The property owner obtained approval through a municipal by-law or an order under the Planning Act, allowing the temporary placement of the garden suite and the conditions for the exemption apply.
Eligibility criteria
To qualify for the Seniors and Persons with Disabilities Property Tax Exemption, your property must meet the requirements outlined in one of the three sets of criteria below.
Eligible housing and property types
- Existing residential homes: Renovated or modified after May 15, 1984, to accommodate a senior (aged 65 or older) or a person with a disability.
- Custom-built residential homes: Constructed specifically to accommodate a senior (aged 65 or older) or a person with a disability.
- Garden suites: One-unit detached structures with bathroom and kitchen facilities, as defined in the Planning Act, used by a senior (aged 65 or older).
See additional eligibility criteria below for your housing and property type.
You may qualify for a tax exemption on a portion of your home's assessed value if the following criteria are met:
- A senior (aged 65 or older) or a person with a disability lives in the home as their personal residence.
- Renovations or modifications were made to an existing residential home to accommodate a senior or person with a disability, such as additions, bathroom and/or kitchen alterations, or other specific improvements.
- If not for the renovation or modification, the person would need to live in a residence where on-site care services would be provided.
- Renovations or modifications were made to the home after May 15, 1984.
- The property’s assessed value increased due to the renovations or modifications.
- The property is classified as residential, as indicated on your Property Assessment Notice, with no more than three residential units.
- You are not operating a business that provides care services to seniors or persons with a disability
You may qualify for a tax exemption of 10% of your home's assessed value if the following criteria are met:
- A senior (aged 65 or older) or a person with a disability lives in the home as their personal residence.
- The new home was custom-built to accommodate a senior or person with a disability so they wouldn't need to live in a residence where on-site care services would be provided.
- The property is classified as residential, as indicated on your Property Assessment Notice, with no more than three residential units.
- You are not operating a business that provides care services to seniors or persons with a disability.
You may qualify for a tax exemption on your garden suite’s assessed value if the following criteria are met:
- A senior (aged 65 or older) lives in the garden suite as their personal residence.
- The senior must be a family member of the owner of the property.
- The property owner has their personal residence on the property.
- The garden suite is a temporary, portable, one-unit detached structure with bathroom and kitchen facilities, as defined in the Planning Act.
- The property owner obtained approval through a municipal by-law or an order under the Planning Act, allowing the temporary placement of the garden suite.
How the tax exemption works
The tax exemption only applies to the portion of the property that accommodates a senior (aged 65 or older) or a person with a disability based on the housing and property type.
Approved exemptions remain in place for a renovated or modified home or a custom-built residential home for as long as the senior (aged 65 or older) or person with a disability continues to live there. For a garden suite, the exemption remains in effect as long as the conditions of the by-law or order are met.
Property owners are responsible for notifying MPAC about any changes to the property or its use and responding to MPAC’s confirmation request when required to confirm if the conditions for the exemption are still in place.
For additional details and examples, click the plus button for your housing and property type.
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.
How to apply
To apply for the tax exemption, contact MPAC and provide detailed information about your housing and property type. Refer to the eligibility criteria to know what specific information is needed.
If you are approved, a portion of your property will be exempt from taxation based on your housing and property type.
Next steps: How the application and approval process work
Here’s what you need to know about the process of applying for the property tax exemption:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
Section 3(1)22 and 3(1)22.1 of the Assessment Act and section 45.2 of Ontario Regulation 282/98 provide a tax exemption for a portion of a residential property where a senior or a person with a disability resides.
The Planning Act defines the requirements of a garden suite.