Definition
Property taxes are an annual municipal tax calculated on the property value listed in the municipal assessment roll.
**Calculation**: Tax = Roll value × Tax rate (mill rate)
Example: Roll value $450,000 × rate $0.90/$100 = $4,050/year
**Tax rates in Quebec (2024, examples)**: - Montreal: ~$0.94-1.08/$100 depending on borough - Quebec City: ~$0.90/$100 - Laval: ~$0.78/$100 - Suburbs (South Shore, North Shore): $0.70-0.90/$100
**Mortgage impact**: Property taxes are included in the GDS (Gross Debt Service) ratio calculation: GDS = (Mortgage payment + Property taxes + Heating + 50% condo) ÷ Gross income
High taxes reduce borrowing capacity. Example: $400/month in additional taxes ≈ reduction of ~$60,000-80,000 in mortgage capacity.
**Adjustments at closing**: At a transaction, the notary calculates property tax adjustments between seller and buyer (portion of the year already paid by the seller, reimbursable to the buyer or vice versa).
**Special taxes**: Some municipalities levy special taxes (local improvement, sidewalk, sewer) that may be assumed by the buyer — to be checked during title examination.