The average new single-family detached home in the Greater Toronto Area costs $222,000—in taxes.
According to a report prepared by Altus Group on behalf of the Building Industry and Land Development Association (BILD), government fees, charges and taxes on GTA condos also run six figures, averaging about $124,000.
Examining Ottawa, Calgary, Montreal and Vancouver, as well as San Francisco, Miami, Boston, Chicago, Houston and New York in the U.S., it was determined that Toronto has the dubious honour of having North America’s highest home taxes.
Per typical single-family home unit, the taxes, government fees and charges in the GTA are three times higher than the average in the aforementioned U.S. cities, and nearly double what they are in the four Canadian cities. The same levies are 1.5 times those in the American cities and approaching 30% higher than the Canadian cities.
“The facts demonstrate that government fees, taxes and charges play a significant role in eroding housing affordability in the GTA. These costs are unsustainable and BILD calls on all governments to bring certainty and transparency for new homebuyers,” said David Wilkes, BILD’s president and CEO.
“The Building Industry and Land Development Association supports the concept that growth should pay for growth. But clearly the costs associated with building a sewer or adding a sidewalk cannot be that much different in Montreal, Ottawa or Calgary. GTA municipalities should not be adding disproportionate costs on new homebuyers as a mechanism to keep property taxes low, especially when the infrastructure benefits all.”
Development charges alone account for close to $100,000 per unit.
“A million-dollar home with HST built in when a builder sells it is about $94,000,” added Michael DiPasquale, CPA and COO of Dunpar Homes. “Wages haven’t gone up much, so how can anyone afford that?”
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate