When people move to or invest in Vancouver, one of the most surprising financial perks they discover is how low Vancouver’s property taxes are compared to other major cities in Canada and even North America. But why is Vancouver’s property tax rate so low, and what does it really mean for homeowners, renters, and investors?
In this guide, we’ll break down the Vancouver property tax system, compare it with cities like Toronto, Calgary, and Seattle, and explore the reasons behind BC’s tax structure — backed by real data and expert insights.
What Is the Property Tax Rate in Vancouver?
As of 2024, the City of Vancouver’s residential property tax rate is approximately 0.2665%, or $2.665 per $1,000 of assessed value.
Let’s put that in perspective:
| City | 2024 Tax Rate (%) | Annual Tax on $1M Home |
|---|---|---|
| Vancouver | 0.2665% | $2,665 |
| Toronto | 0.6650% | $6,650 |
| Calgary | 0.7100% | $7,100 |
| Montreal | 0.8250% | $8,250 |
| Seattle, WA | ~0.9250% | ~$9,250 (USD) |
Source: City of Vancouver, [Toronto.ca], [Calgary.ca], [City of Montreal], [King County Assessor]
Why Are Vancouver’s Property Taxes So Low?
1. High Property Values = Lower Mill Rate Needed
Vancouver has some of the highest real estate prices in Canada, with the benchmark price for a detached home hovering above $1.9 million and condos averaging over $750,000.
Because property taxes are calculated using the assessed value × mill rate, the City of Vancouver doesn’t need to set a high rate to meet its budget. Even a modest tax rate applied to a high-value property can generate sufficient revenue.
Example:
- A $1.9M home taxed at 0.2665% brings in $5,063.
- In Calgary, a home of similar size might cost $700K, but at a rate of 0.71%, it would bring in $4,970 — nearly the same.
2. Vancouver’s Revenue Comes From Other Sources
Unlike some cities that rely heavily on property taxes, Vancouver has diversified revenue streams, including:
- Development Cost Levies (DCLs)
- Empty Homes Tax (3% as of 2023)
- Land Transfer Taxes
- Business taxes and utility fees
These alternate tax tools allow the city to lighten the load on homeowners while still meeting public service demands.
According to City of Vancouver Budget Reports, property taxes make up just over 50% of city revenue, while fees, fines, and transfers from other governments cover the rest.
3. Provincial Oversight in BC’s Assessment System
BC uses a centralized property assessment system managed by BC Assessment, which standardizes how all properties are valued across municipalities. This ensures uniform assessments, reducing inconsistencies that might otherwise lead to rate inflation.
Other provinces allow more municipal discretion, which can result in higher property tax burdens on average homeowners.
4. Low Municipal Debt and Efficient Spending
Vancouver maintains relatively low levels of municipal debt per capita compared to cities like Montreal or Toronto. With strong fiscal management and strict borrowing regulations under BC’s Community Charter, municipalities are encouraged to balance their books rather than over-rely on taxation.
Vancouver Property Tax vs Other Cities: What It Means for You
🔹 Homeowners Benefit from Low Ongoing Costs
If you’re buying a $1M condo in Toronto, your annual property tax bill would be over $6,000. In Vancouver, it’s less than half that amount. For many, this makes ownership more affordable long-term, especially if they’re on a fixed income or planning to hold for years.
🔹 Renters Don’t Always See the Savings
Landlords in Vancouver may be paying lower taxes, but high demand and limited supply mean those savings rarely get passed on to renters. In fact, rent levels in Vancouver remain among the highest in Canada despite lower property taxes.
🔹 Investors May Face Additional Taxes
If you’re buying an investment property, note that foreign buyers (with few exceptions) face a 20% Foreign Buyers Tax and 1–2% annual vacancy taxes, such as:
- Speculation and Vacancy Tax (SVT)
- Empty Homes Tax (City of Vancouver)
- Underused Housing Tax (Federal)
So while the base property tax rate is low, these stacked investor-focused taxes can increase the total cost of ownership.
Will Vancouver’s Property Tax Stay This Low?
It’s possible that Vancouver’s rates may creep up modestly over time, especially as infrastructure, housing initiatives, and transit projects demand funding. But massive increases are unlikely because:
- High home values continue to generate strong revenue.
- Political pressure exists to keep property taxes low due to affordability concerns.
- The city can still raise funds via targeted levies like the Empty Homes Tax.
According to the 2024 Vancouver Budget, a 7% property tax increase was approved — but that’s a percentage of the rate, not a jump from 0.27% to 7%.
Final Thoughts: Why Vancouver’s Low Property Tax Matters
If you’re asking “Why are Vancouver property taxes so low compared to other cities?”, the answer lies in a unique mix of high property values, alternate tax revenues, centralized assessments, and careful municipal budgeting.
This low rate is a financial advantage for long-term homeowners and makes Vancouver especially attractive for retirees, investors, and buyers seeking lower holding costs — even if the sticker price of the home is high.
Still, buyers should remember that other taxes, like transfer and vacancy taxes, can offset the savings depending on the property type and use.
Frequently Asked Questions
Does Vancouver have low property taxes?
Yes, Vancouver has some of the lowest residential property tax rates in Canada. As of 2024, the rate is around 0.2665%, which is significantly lower than cities like Toronto, Calgary, or Montreal. Despite high home prices, the low mill rate keeps annual tax bills relatively affordable.
What cities in Canada have the lowest property taxes?
Some Canadian cities known for low property tax rates include:
- Vancouver, BC
- Whistler, BC
- West Vancouver, BC
- Richmond, BC
- Markham, ON (also relatively low for Ontario)
These cities often have high property values, which allows municipalities to maintain lower rates while still generating necessary revenue.
Where are the lowest property taxes in BC?
In British Columbia, the lowest property tax rates are typically found in:
- Vancouver
- West Vancouver
- Whistler
- North Vancouver
- Burnaby
However, some smaller resort or rural areas (like Tofino or Pemberton) may have comparably low rates depending on municipal budgets and property values. Always check the latest rates on the BC Property Tax Estimator via gov.bc.ca.
Does Vancouver have high taxes?
Not when it comes to property taxes. Vancouver’s property tax rate is low, but the city does have higher-than-average home prices, and there are additional taxes for certain owners:
- Empty Homes Tax (3%)
- Speculation & Vacancy Tax
- Land Transfer Tax
- Foreign Buyers Tax (20%, where applicable)
So while annual property taxes are low, the overall cost of owning property in Vancouver can still be high depending on your situation.
More Resources
- City of Vancouver Property Tax Info
- BC Assessment Website
- Vancouver Empty Homes Tax Details
- Compare Property Taxes Across Canada – WOWA
- Renting vs Buying in Vancouver: Which Is Better in 2025?
- Is It Worth Renovating Before Selling Your Vancouver Home?
- Is It Better to Buy a Pre-Sale or Resale Condo in Vancouver?
My name is Jay, a longtime Metro Vancouverite sharing local real estate tips and my own photos of the city’s homes and neighbourhoods here on Vancouver Home Hub. Hope you find my blog useful! Feel free to reach out anytime at vancouverhomehub@gmail.com if you have questions.
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