Why am I paying so much in property taxes, and where exactly is all that money going?
If you’ve ever asked yourself that while clutching your tax bill with a furrowed brow, you’re not alone. In 2025, as homeownership costs continue to climb in London, Ontario, understanding the ins and outs of property taxes has become more crucial than ever. And no, it’s not just about the numbers, it’s about how those numbers shape your day-to-day life, your long-term investment, and even your neighbourhood.
Let’s break it all down, human to human, and not get lost in bureaucratic jargon.
What Are Property Taxes, Really?
You can think of property taxes as the price the city pays for public services. You pay it, and in return, you get working roads, snow removal (hello, January in London), emergency services, and public education, all the things that make the city a good place to live and work.
- The Municipal Property Assessment Corporation (MPAC) assess the value of your property
- The city sets the municipal tax rate each year.
These are the two primary parts that go into figuring out how much property tax you owe in London, Ontario. Add those two numbers together to find out how much you owe. It’s easy to say, but a little harder to understand when you see the final number.
2025 Tax Rate Update: What’s New?
This is when things start to get interesting. London’s residential tax rate has gone up a little for 2025. It’s not a big deal, but it’s enough to make homeowners who are already dealing with mortgages, gas expenses and grocery bills that are going up because of inflation raise their eyebrows.
Why the rise? The city council says it’s a response to the costs of running the city and more needs for infrastructure. The budget has gone up because of new bus routes, road repairs, and initiatives to get ready for emergencies.
The good news? London’s property tax rate is still lower than those of places like Toronto or Ottawa. But here’s the kicker: even if the rate didn’t change significantly, your individual tax payment might still go up if the value of your property went up.
Assessed Value
Do you remember MPAC? Every four years, they check your property again. The last thorough check was in 2020, and the next one is due in 2024, but it will have an effect on your 2025 taxes. They look at things like the size of the house, the size of the lot, any modifications, and sales of similar homes in your neighbourhood.
If you put in a new kitchen or finished your basement during the pandemic, that’s great, but your taxes probably went up because of the increase in value. It’s a double-edged sword: higher equity is good, but it also implies more taxes.
Can You Lower Your Property Taxes? Actually, Yes.
You can’t change the tax rate, but if you think your property’s assessed value is too high, you can appeal it. This is when a accounting firm london ontario becomes more than just someone you meet during tax season. Don’t underestimate how helpful a tax specialist who knows the local system may be.
What Does Your Tax Bill Cover?
Before you curse that bill, think about what it really pays for:
Road maintenance and snow removal (think about how bad winter would be without it)
- Road maintenance and snow removal
- Garbage and recycling pickup
- Police, fire, and paramedic services
- Public libraries and parks
- Transit and bike lanes
- Affordable housing programs
It’s basically the cost of living in a community that works. Property taxes are one of the only ways that cities can pay for important services, even though they may seem like a hardship.
Budgeting for Property Taxes in 2025
Budgeting for property taxes is something you have to do, whether you’re a new homeowner or have been one for a long time.
They aren’t going away, and if you miss a payment, you could face fines or worse.
Here’s what works for most homeowners:
- Open a monthly tax savings account: Think of it like a Netflix membership, but this one keeps your street lights on.
- Use the tax escrow from your mortgage lender: A lot of lenders will collect your taxes every month and pay the city for you. You don’t have to remember this deadline anymore.
- Get help from a personal tax accountant: They can help you plan for tax hikes and maybe even find deductions or credits you might be able to claim, especially if you work from home, own rental property, or are over 65.
How to Pick the Ideal Accountant in London, Ontario
Not every accountant is the same. You need someone local for something as complicated as property taxes, someone who knows how London’s city rules change over time.
Find a personal tax accountant that knows a lot about real estate, taxes on businesses, and home assessments. Even better, ask people in your community. For services in your area, word of mouth is generally better than Google reviews.
Wrapping Up
Property taxes can seem like just another thing you can’t control in a world where costs are going up and markets are hard to anticipate. But if you have the appropriate information and the right friends, you can get some of that control back.
Remember this whether you’re contesting an assessment, making a wise budget, or just trying to figure out that complicated tax bill: You’re not just a homeowner. You have a stake in your city. And that means you have both a duty and an opportunity.
So, the next time you get your property tax bill, stop and think about what it’s really paying for and how you can make sure you’re not spending too much. A prudent homeowner doesn’t just pay their taxes. They are getting them.