Property Taxes

How can I reduce the property tax on my farm?

In Ontario there are three programs which may reduce the property taxes on your farm property. All three programs have specific eligibility requirements and may have critical annual deadlines which may change. To explore the current possibilities and requirements visit the links below:

1. Farm Property Class Taxation Program

• Farmland is currently taxed at 25% of the municipal residential rate. You must apply for this Program. In order to qualify for this tax program, your property (or that of your farm landlord) must be assessed as 'farmland' by the Municipal Property Assessment Corporation (MPAC). Assessment classifications can be appealed. To find out how click here .

• To be eligible for the reduced taxation rate, farmland must be actively farmed by the owner or a tenant farmer with a Farm Business Registration number. New farmers who do not yet have the required income level to qualify for a Farm Business Registration Number ($7000 gross farming income) may apply for a 'start-up exemption' to get the lower property tax rate for their own property OR the property of their farm landlord.

• If you are looking for a tenant farmer, try our Matchmaker.

2. Managed Forest Tax Incentive Program

This program is currently available to landowners who own four hectares (about 10 acres) or more of forest land, and who agree to prepare and follow a Managed Forest Plan for their property. Click on the link above for more information.

3. Conservation Land Tax Incentive Program

This program supports the long-term private stewardship of Ontario's provincially significant conservation lands by providing property tax relief to those landowners who agree to protect the natural heritage values of their property. Only land identified by the Ministry of Natural Resources as 'provincially significant' is eligible. If you own land identified by the Ministry as eligible for the Program, an application will be sent to you during the summer prior to each new tax year. The current tax relief offered is a 100% tax exemption on the eligible portion of the property. Click on the above link above for more information.

Farm property that does not qualify for one of the above special tax rates is classed in the Residential Property Class, and taxed at the full rate set by the municipality.

For further help in reading your farm tax bill, see OMAFRA's Information Bulletin entitled 'Making Sense of Your Farm Property Tax Bill'.