Toronto Tax Bylaw: Steps Before Tax Sale

Taxation and Finance Ontario 4 Minutes Read · published February 11, 2026 Flag of Ontario

In Toronto, Ontario, unpaid property taxes can trigger a formal collection process that may culminate in a municipal tax sale. This guide explains the typical steps the City of Toronto follows before seizing or selling property for tax arrears, who enforces the rules, and what owners can do to avoid loss of title. For account inquiries or to arrange payment, contact City of Toronto Revenue Services via the official property tax page City of Toronto Property Taxes[1].

Common pre-sale steps

  • Issuance of tax bill and regular interest on overdue balances.
  • Multiple reminders and notices of arrears sent to the registered property owner.
  • Formal notice that the account is in arrears and may be subject to sale if unpaid.
  • Registration of tax arrears information and scheduling of properties for a public tax sale.
Act quickly: early contact with Revenue Services can often prevent escalation to a tax sale.

Penalties & Enforcement

The City of Toronto enforces property tax collection through its Revenue Services branch and may proceed to a tax sale when taxes remain unpaid after required notice periods. The Citys public tax sale process and pre-sale notices are explained on the Citys tax sale page Toronto Tax Sale[2].

  • Monetary penalties: specific fine amounts for tax arrears are not specified on the cited City pages; the primary monetary consequence is the accrual of interest and the requirement to pay outstanding taxes, costs and sale expenses.
  • Interest and costs: interest and administrative costs apply to overdue taxes; exact rates or schedules are shown on the Citys official pages or account statements and are not reproduced here in full.
  • Escalation: if taxes remain unpaid after notices and redemption periods, the property may be offered for sale at public tax sale; escalation timing and thresholds are described on the Citys tax sale page and may vary by case.
  • Non-monetary sanctions: the principal non-monetary sanction is loss of the right to retain title through sale; the tax sale can transfer title to a purchaser subject to statutory redemption rules.
  • Enforcer and contact: Revenue Services, City of Toronto is the enforcing office; owners should use the City property tax contact pages to report errors, request statements, or begin arrangements. See the contact link above and the tax sale information Toronto Tax Sale[2].
  • Appeals and reviews: appeals of assessment are handled through the Municipal Property Assessment Corporation (MPAC) and the Assessment Review Board; appeals regarding tax collection or decisions by the City follow administrative review or judicial routes—time limits for appeals or redemption are case-specific and where not listed on the City page are "not specified on the cited page".
  • Defences and discretion: common responses include payment plans, proof of payment, errors in billing, or application for tax relief programs; availability and approval are governed by City policy and documentation on the official pages.
Exact dollar fines and some deadlines are not specified on the cited City pages and must be confirmed with Revenue Services.

Applications & Forms

The City publishes account statements and instructions for payment and redemption on its property tax pages. Specific application names, form numbers or fees for redemption or relief are either shown on those pages or are provided when contacting Revenue Services; if a named form or fee is required, it is identified on the Citys official pages and is not reproduced in full here.

How-To

  1. Confirm the outstanding amount on your City of Toronto property tax account.
  2. Contact Revenue Services immediately to request a payment arrangement or to dispute charges.
  3. Gather evidence: payment receipts, mortgage statements, correspondence and assessment notices.
  4. Apply for any available relief or hardship program shown on the City pages or submit required redemption payments before the sale date.
  5. If a tax sale notice is received, follow instructions to redeem the property or attend the sale as required.

FAQ

What happens before a property is sold for unpaid taxes?
The City issues tax bills, reminder notices and formal pre-sale notices, and posts properties scheduled for tax sale; owners are given opportunities to pay or redeem before sale.
Can I set up a payment plan to avoid a sale?
Yes. Contact City of Toronto Revenue Services immediately to discuss arrangements; early contact increases chances of avoiding further enforcement.
How do I challenge the tax amount or assessment?
Assessment disputes are handled through MPAC and the Assessment Review Board; billing disputes should be raised with Revenue Services using the official contact channels.

Key Takeaways

  • Contact Revenue Services early to discuss payment or dispute options.
  • Tax sale is a last resort but can result in loss of title if redemption is not completed.
  • Read and act on all notices promptly; deadlines are time-sensitive.

Help and Support / Resources

  1. [1] City of Toronto - Property Taxes
  2. [2] City of Toronto - Tax Sale Information

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