MPAC Fact Sheet
The Municipal Property Assessment Corporation (MPAC) is an independent, not-for-profit corporation funded by all Ontario municipalities.
Our role is to accurately assess and classify all properties in Ontario. We do this in compliance with the Assessment Act and regulations set by the Government of Ontario.
We are the largest assessment jurisdiction in North America, assessing and classifying more than 5.3 million properties with an estimated total value of $2.96 trillion in 2019.
We are accountable to the Province, municipalities and property taxpayers of Ontario through a 13-member Board of Directors. The Board of Directors is comprised of provincial, municipal and taxpayer representatives appointed by the Minister of Finance.
Ontario’s Property Assessment System
Each component of Ontario's property assessment system plays an important role.
The Provincial Government passes legislation, sets assessment policies and determines education tax rates. The Province also operates an independent assessment appeal tribunal – the Assessment Review Board (ARB).
MPAC determines Current Value Assessments and classifications for all properties in Ontario.
Municipalities determine revenue requirements, set municipal tax rates and collect property taxes to pay for municipal services. Education tax rates, set by the Ontario Government, may also be applied using the assessed value.
Property assessments are the foundation on which municipalities base the property taxes that pay for the services we use every day. Our people take property assessment seriously because it’s the part we play in helping to make the communities we all live in stronger.
MPAC completes a province-wide Assessment Update every four years based on a legislated valuation date. The valuation date, established by the Ontario government, is a fixed day on which all properties are valued.
The last province-wide Assessment Update took place in 2016, based on a January 1, 2016 valuation date. The Ontario Government has announced that the 2020 Assessment Update has been postponed. Property assessments for the 2021 taxation year will continue to be based on the fully phased-in January 1, 2016 current values (i.e., the same valuation date in use for the 2020 taxation year).
To provide an additional level of property tax stability and predictability, market increases in assessed value between Assessment Updates are phased in gradually over four years. A decrease in assessed value is introduced immediately.
Assessment and Property Taxes
Annual property assessment increases are revenue neutral, which means they have no impact on the total property tax amount that a municipality might raise. Rather, these changes provide for a redistribution of property taxes within a municipality, based on the value of the property owned.
Learn more in this video: https://www.youtube.com/watch?v=xgGbLotF_QQ.
Current Value Assessment
To establish a property’s assessed value, MPAC analyzes sales of comparable properties in the area. This method, called Current Value Assessment (CVA), is used by most assessment jurisdictions in North America. In addition, we look at all of the key features that affect market value. When assessing residential properties 200 different factors are considered, however five major factors account for approximately 85% of the value: location, lot dimensions, living area, age of the property, adjusted for any major renovations or additions, and quality of construction.
AboutMyProperty – A tool designed for property taxpayers to explain how MPAC has assessed their property and similar properties in their neighbourhood. AboutMyProperty also provides information about how MPAC assesses different types of properties: Residential, Farm, Multi-residential and Business. We encourage property owners who have questions about their assessment to access this valuable resource.
About MPAC and Ontario’s Assessment System – A quick resource document that will help you understand MPAC’s role and the several main components in Ontario’s property assessment and taxation system.
Learn how your property taxes are calculated based on the assessed value of your home – An MPAC video resource to help demonstrate the link between property assessment and your municipal taxation process.