In short
It pays for roads, transit, garbage collection and other city services. When the city raises rates, your bill goes up.
Many owners pay it through their mortgage payments so there's no big bill twice a year.
How your bill is calculated
Your property tax is your home's assessed value from MPAC multiplied by the total tax rate. That rate combines the City's municipal rate and the provincial education rate.
What you paid for the home doesn't set your tax. Two neighbours with similar assessments pay similar taxes, even if one bought last year and the other bought decades ago.
When city council approves its budget and rates rise, your bill goes up even if your assessment stays the same.
Each Ottawa bill shows your assessment, the rates applied and how the total splits between city services and education.
How the City of Ottawa bills you
Ottawa sends two bills a year. The interim bill is 50% of the previous year's taxes and is due on the third Thursday in March. In 2026 that was March 19.
The final bill covers the rest of the year's taxes once the new rates are set. It's due on the third Thursday in June.
The City also offers pre-authorized debit plans, and many owners pay through their mortgage lender instead, which collects a portion with each mortgage payment and pays the City for you.
If you miss a due date, the City adds penalty and interest charges, so set reminders or sign up for a payment plan.
Property tax when you buy
On closing, your lawyer adjusts the year's taxes between you and the seller, so each side pays only for the days they own the home. After closing, make sure the City's account is in your name and that you know whether you or your lender is paying the next bill.
Property tax also affects how much you can borrow. Lenders include it in your debt service ratios, so a home with higher taxes can lower the mortgage you qualify for. A newly built home may get a supplementary bill once MPAC assesses the finished house, so budget for it.
Common questions about property tax
When are property taxes due in Ottawa?
Ottawa's interim bill is due on the third Thursday in March and the final bill on the third Thursday in June. The interim bill is half of last year's taxes, and the final bill covers the balance. The City also offers pre-authorized debit plans if you'd rather spread payments out.
How is property tax calculated in Ontario?
It's your MPAC assessed value multiplied by the combined municipal and education tax rate. Your municipality sets its rate each year through its budget, and the province sets the education rate. The price you paid for the home doesn't change the calculation.
Can I pay property tax through my mortgage?
Yes, many lenders will collect property tax with your mortgage payments and pay the City for you. Some require it, especially on insured mortgages. Ask your lender how its tax account works and confirm who pays the first bill after closing.
Who pays property tax in the year I buy a home?
The buyer and seller each pay for the part of the year they own the home. Your lawyer works this out on the statement of adjustments at closing. If the seller prepaid, you reimburse them for the days after closing.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.