Your Property Taxes & Budget
On your Town property tax bill, you see a blended tax rate. This means that while Lincoln sets a certain tax rate increase, it is only on the Town’s portion of your tax bill. The diagram below shows the breakdown or blend of taxes.
Breakdown of taxes:
- Lincoln’s portion 36%
- Niagara Region’s portion 51% (Region & Region waste)
- Education 13%
How are property tax rates calculated?
Assessed value of your property X tax rate set for your property class = property tax
Here is a video that explains the relationship between property values and property taxes.
These three rates provide the foundation on which municipalities base property taxes:
- Municipal tax rates - set based on the Town and Region budget each year
- School board rates - set by the province
- Property assessments - set by the Municipal Property Assessment Corporation (MPAC)
In other words:
- Each municipality determines how much it costs to provide all the services in a community - such as parks, fire protection, roads and sidewalks
- Once that's done, the municipality takes all of the property values and determines tax rates for different property types to secure enough funds to provide these services
- This tax rate is then used to calculate how much property tax residents will pay to the municipality. In addition to the municipal tax rate, the Province of Ontario sets the education tax rate, and Niagara Region sets the regional municipality rate, which determines their portions of the property tax bill.
So why do property taxes change year over year?
Taxes may change due to one or a combination of these factors:
- A change in the annual budget or requirements for municipal operations, Regional operations or education and waste management amounts
- A particular property assessment (market value) changed more or less than the average
For an estimate of the amount of property tax you will pay and the distribution of your Regional taxes, visit the Niagara Region's Property Tax Calculator
Further questions about your tax bill? Visit the Understanding your Tax Bill page.
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