It’s that time of year again: Tax time. Each year, your property taxes increase. That’s why you need a property with a growing market value to outpace it. Is it time to sell your home and search for a new investment opportunity?
You pay your taxes as required, but you might not know how they’re calculated or how they’re spent. We’re going to explore how property taxes are calculated and allocated in Vancouver:
How Are Property Taxes Calculated?
You’ve just received your tax bill in the mail and noticed that the tax payable is a different amount than in previous years. Why is that?
Your property tax rate is determined by several factors, including:
- the assessed value of your residential property
- the location of your property
- the tax rate approved by the Council
Multiply the property value of your home (determined by BC Assessment) by the total tax rate to determine the amount of tax payable.
There are two deadlines for paying your property taxes in 2022. Advance taxes were due on the second business day of February, while main taxes are due on the second business day of July. If you miss these deadlines, you may be subject to a penalty of up to 5%.
How Are Property Tax Dollars Spent?
You might pay hundreds or thousands of dollars each year in property taxes (depending on the market value of your home). It’s only natural to wonder how that money is spent.
We’ve gathered data on how taxes are spent in North Vancouver. Keep in mind that this is not representative of all of Greater Vancouver; it’s specific to one area of the city.
According to an infographic on the City of North Vancouver website, here’s a breakdown of where that money goes in this part of the city:
- 57% goes to the City of North Vancouver (to cover services such as development, health, housing, social services, protective services, and general government)
- 30% is for school taxes (if you own a property that’s valued at over $3 million by BC Assessment, you’ll need to pay a higher school tax)
- 9% goes to TransLink
- 4% is allotted to other regional agencies
Changes in 2022
You might be wondering why your property taxes are higher than expected this year. Vancouver residents are accustomed to annual increases of ~5%, but the 2022 increase was more than usual.
The Vancouver council at city hall approved a 6.35% increase in property tax rates in 2022. This number is higher than most property owners expected for a few reasons. The city reports that this tax increase is partially to increase climate resiliency and manage the ongoing challenges of COVID-19.
Work with an Experienced Vancouver Realtor
Still have questions about your property tax rates in Vancouver? Looking for an expert realtor to help you sell your home? You’ve come to the right place.
With years of experience managing Vancouver real estate listings, Leo Wilk knows the ins and outs of selling properties. When it’s time to sell your property, get representation from an experienced professional. Contact Leo Wilk today!