For many property owners in the Greater Toronto Area, receiving that annual property tax bill is just part of the routine. But what happens when the number on that bill doesn’t seem fair? Whether you’re a homeowner who feels their modest bungalow has been overvalued or a commercial property owner struggling with increasing overhead, one of the most powerful tools at your disposal is a professional appraisal.
Property taxes in Ontario are based on a property’s assessed value, which is set by the Municipal Property Assessment Corporation (MPAC). But these assessments are often generalized and don’t always reflect a property’s true market value—especially in a rapidly changing real estate landscape like Toronto. That’s where an independent appraisal can make a significant difference.
In this article, we’ll break down how appraisals play a key role in property tax appeals and walk you through real-world examples of how GTA residents and businesses used this approach to challenge their assessments—and win.
Why Property Assessments Aren’t Always Accurate
MPAC conducts assessments based on market value as of a specific valuation date, which can be years in the past. While they rely on broad data and computer models, they often miss the finer details that can dramatically impact value. Things like location nuances, recent renovations, property conditions, or even nearby developments can change how your property should be valued.
This becomes especially problematic during times of economic shift, like what we’ve experienced in recent years with interest rate fluctuations, market slowdowns, and changes in commercial occupancy trends. Without a current, localized appraisal, you’re at the mercy of assumptions that may no longer apply.
Case Study: A Residential Owner in East York
A homeowner in East York contacted IPS after receiving a tax assessment that pegged their modest three-bedroom home at nearly $1.1 million. Their concern? Similar homes on the street had recently sold for significantly less—and the MPAC valuation didn’t account for the property’s depreciated structure and interior, which hadn’t been updated in over 30 years.
Our team completed a detailed appraisal that factored in comparable sales, property condition, and zoning specifics. The final value came in more than $150,000 below MPAC’s number. With this report in hand, the homeowner filed a Request for Reconsideration (RfR) and was granted a reassessment within 60 days. The result? A permanent reduction in their property taxes and nearly $1,200 saved per year.
Case Study: A Retail Business in Scarborough
- A family-owned retail store operating in a small plaza in Scarborough faced a steep increase in their commercial property taxes in 2024. MPAC’s assessment had jumped based on surrounding development, assuming all units were operating at full market rent and capacity. In reality, half the plaza had long-term tenants on legacy leases, and two units were vacant due to renovations.
The business owner contacted IPS for help. We provided a market-supported appraisal that clearly illustrated lower rental income, increased operating costs, and vacancy adjustments. The business used the appraisal to formally appeal the assessment, which resulted in a 20% reduction in the assessed value—saving the owners over $5,000 annually in property tax.
Case Study: Industrial Property in Mississauga
An investor-owned industrial property in Mississauga had undergone significant structural issues due to deferred maintenance, but MPAC still assigned a top-of-market value in its 2022 cycle. The investor was planning to refinance and needed the value corrected to reflect actual condition and income potential.
We were brought in to appraise the property under both current market value and income approaches. Our findings showed that structural concerns, tenant improvements required, and recent rental downturns in that particular submarket warranted a significant downward adjustment. The appeal was filed with the Assessment Review Board (ARB) and ultimately accepted. The new assessment reflected the appraised value and allowed the investor to secure more appropriate refinancing terms without inflated tax liability.
Why Professional Appraisals Strengthen Your Appeal
Appraisals done by licensed professionals bring more than just a number—they bring credibility. They are detailed, compliant with the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), Assessment Act and include neighborhood-specific analysis and documented comparable sales.
For homeowners, this could mean highlighting structural flaws or market conditions that weren’t reflected in MPAC’s assessment. For business owners, it often involves proving the actual income-producing capacity of the property compared to what MPAC assumes. And for investors, it can mean navigating complexities like cap rates, zoning potential, or underutilized land.
An appraisal arms you with a third-party, impartial opinion of value. This is crucial when making a strong case to MPAC or the ARB, particularly if the situation goes beyond a simple review request and becomes a formal hearing.
Timing Matters for Appeals
In Ontario, homeowners and businesses can file a Request for Reconsideration by March 31 of the taxation year, or, for commercial properties, they may choose to go directly to the Assessment Review Board. Getting your appraisal done early gives you enough time to prepare your documents, consult with legal counsel if necessary, and make an informed appeal without rushing.
Whether you’re acting proactively before the deadline or responding to a surprisingly high tax bill, the sooner you have a professional valuation in hand, the better.
How IPS Can Help
Our team at IPS has helped countless Toronto-area property owners challenge inaccurate assessments. With deep knowledge of Toronto’s real estate market and extensive experience in both residential and commercial appraisals, we know what it takes to prepare an airtight report that speaks the language MPAC and review boards understand.
We don’t just deliver numbers—we deliver insight, strategy, and real results for homeowners, investors, and businesses alike. Our appraisal services can be tailored for informal MPAC reconsiderations or full ARB proceedings, depending on your situation.
Final Thoughts
Overpaying property tax based on an outdated or inaccurate assessment is more common than most people think. But you don’t have to settle for it. Whether you’re a homeowner in Toronto or a commercial property operator in the GTA, a professional appraisal can be your most effective tool in fighting back—and winning.
If you’re planning to challenge your property tax assessment or just want to better understand whether your current valuation is accurate, now is the time to act. Contact IPS today at info@ipsrealty.ca to schedule a consultation and start protecting your property’s true value.
