Policy Forum: Vancouver's Property Taxes in Perspective

Abstract

Vancouver has unusually inelastic housing supply, therefore, one might expect property taxes to be higher there than elsewhere in Canada. A natural comparative measure of the property tax burden across markets is the ratio of property tax to rent. By this measure, the total property tax burden for a typical owner-occupied home (inclusive of annualized property transfer tax) in Vancouver (10 percent) is significantly lower than the mean among other Canadian cities (16 percent) where data allow ready comparison. More expensive homes in Vancouver face higher rates that are closer to but still lower than those typical in other large Canadian cities.

Keywords: Housing, Property Taxes, Property Values, Vancouver, Tax Burden