FAQs
- The Municipal tax rate set by the Town of Whitby represents 35 per cent of the total property tax bill.
- The Regional tax rate set by the Regional Municipality of Durham represents 53 per cent of the total property tax bill. .
- The Education (or School Board) tax rate set by the Province of Ontario represents 12 per cent of the total property tax bill.
- Completing an on-going comprehensive review and update of the Town’s zoning by-laws, including permissive policies to support accessory units in ground related housing forms and contemporary regulations to accommodate a wide range of housing types as-of-right;
- Continuing to implement Official Plan policy adjustments to increase the proportionate share of medium and high-density residential units in strategic areas of the Town, such as designated centers, corridors and the Whitby GO Station and Port Whitby areas;
- Initiating an update to the Town of Whitby Official Plan to comply with recent changes to the Growth Plan for the Greater Golden Horseshoe and a pending new Official Plan for the Region of Durham;
- Initiating an update to strengthen the policy basis for medium and high-density residential units within the Whitby GO Major Transit Station Area;
- Developing a Housing Acceleration Strategy; and
- Capitalizing on funding sources, such as the Streamline Development Fund, to further advance online portal development for Planning Act and Ontario Building Code Act related applications.
What’s the difference between the staff-proposed Draft Budget released on November 4 and the Strong Mayor’s Budget released on November 18?
Based on resident feedback and concerns about tax increases, I’ve made amendments to the draft budget proposed by Town staff on Nov. 4, bringing the proposed tax increase for 2025 from 5.7 per cent down to 4.5 per cent. The proposed tax increases for 2026 and 2027 have also been reduced – from 5.6 per cent in 2026 to 4.9 per cent, and from 5.4 per cent in 2027 to 4.8 per cent. These numbers will be reviewed annually with continued efforts to find efficiencies and new revenue opportunities.
| Budget Year | 2025 | 2026 | 2027 |
|---|---|---|---|
| Draft Budget Increases (prepared by Staff) | 5.7% | 5.6% | 5.4% |
| Strong Mayor's Budget Changes (in thousands) | ($1,508) | ($1,000) | ($850) |
| Strong Mayor's Budget | 4.5% | 4.9% | 4.8% |
The proposed Strong Mayor’s Budget would result in a 1.6, 1.7, and 1.8 per cent increase on the total residential bill for Town services for 2025, 2026 and 2027 respectively. For 2025, this represents an increase of approximately $99 per year (or 27 cents per day), for an average Whitby home assessed at $503,000.
| Budget Year | 2025 | 2026 | 2027 |
|---|---|---|---|
| Strong Mayor's Budget Increase | 4.5% | 4.9% | 4.8% |
| Impact to Average Whitby Homeowner (Increase on total tax bill for Town services) | $99 | $112 | $115 |
| 1.6% | 1.7% | 1.8% | |
| Impact per $100,000 of Assessment | $19.60 | $22.18 | $23.82 |
Why do I keep reading that Whitby has the highest property taxes?
I’m aware of recent media coverage indicating Whitby has the highest property tax rates in the GTA – however this information is not based on apples-to-apples comparisons. Whitby is middle of the pack among the lakeshore municipalities when it comes to property taxes. When ranking municipal property taxes, it’s important to use the same housing values to start and look at services provided and revenue sources available (where our money comes from).
Revenue Source Comparison:
For example, Ajax and Pickering have casinos, meaning their municipalities benefit from casino revenues, while the City of Toronto has a Land Transfer Tax as a revenue source. Whitby doesn’t have the benefit of either. To help offset impacts on taxpayers, we are working to implement our own revenue sources. One example is the new Municipal Accommodation Tax (MAT) approved earlier this year by Council. The MAT is charged to visitors to the Town and collected from Whitby hotels, motels, and other accommodations. The Town has also been applying for and receiving millions in federal and provincial grants to help fund Town capital projects.
Service Delivery Comparison:
Whitby is only one of two municipalities in Durham Region that provides its own waste collection service to residents. That means the Town’s budget is impacted by having to maintain equipment, materials, staffing, service contracts, and more.
What This Means:
Despite not having casino revenues and offering more services, the Town of Whitby is still mid-range when it comes to property taxes within Durham.
Inflation is going down, why aren’t our taxes?
Inflation is just one of many factors that impact the Town’s budget. In recent years, the Town has worked to keep taxes as low as possible to help residents weather high inflation rates and the stresses of the pandemic.
Whitby faces many complex budget challenges including aging infrastructure, the need to invest in Council-approved initiatives like the Whitby Sports Complex and a new fire hall and 20 new firefighters to support growth in West Whitby. Additionally, provincial policy changes and downloading also impacts the Town’s bottom line. For example, recent changes to Bill 23, saw the loss of over $5 million to-date in developer payments to the Town for the future purchase of parkland. Data shows nearly a third of municipal spending now goes to services that are the Province’s jurisdiction, resulting in a funding gap of $4 billion annually across Ontario.
How are taxes calculated in Whitby?
Residents pay property taxes to cover the cost of services provided by the Town of Whitby.
There are three tax rates on your property tax bill:
The Town is responsible for collecting property taxes on behalf of the Region of Durham and the School Boards.
Some of the Municipal services provided by the Town through taxes include snow clearing, road repair, fire and emergency services, parks maintenance, and libraries. The Region provides services like policing, ambulance, Regional road maintenance and repair, and transit, to name a few. The last service provided by your property taxes is the school system support and the rates for this are approved by the Province.
Each budget year, the Town determines how much money is needed to maintain our services and provide any service enhancements. This total cost is divided by the total assessed value of all properties across Whitby. The Municipal Property Assessment Corporation (MPAC) assesses all properties across Ontario. MPAC determines each property value and provides them to the Town each year.
Residential homes are assessed using the direct comparison approach, in other words, what similar homes are selling for in the area. If you have purchased a newly built home you can use your purchase price to calculate an estimated tax levy until the property is fully assessed by MPAC.
Final municipal tax rates for the year are determined after Whitby Council and the Region of Durham approve their annual budgets, and the Province of Ontario establishes the education rate.
What is Bill 23?
Bill 23 is the Province of Ontario's 'More Homes Built Faster Act'.
The Province says Bill 23 will increase affordable housing in Ontario by building 1.5 million new homes by 2032 – 18,000 of which are mandated to Whitby. Bill 23 actually means higher property taxes, a reduction in existing services for Whitby residents, and more.
Will Bill 23 increase my taxes?
Initial analysis shows Bill 23 will cost Whitby taxpayers $34 million per year; shifting costs of growth for things like parks, new roads, and recreational facilities directly from developers to you. This means at least a 30 per cent overall property tax increase; about a $600 property tax increase for an average Whitby home due to the impacts of Bill 23 alone.
Will Bill 23 create more affordable housing in Whitby?
Bill 23 will create less affordable housing, not more. The Bill does not dictate that developers reduce housing prices by the “savings” created by Bill 23 – the market dictates the price of homes. Any “savings” will go directly to developers, with no guarantee that homes will be built or that they will be affordable. In Whitby, we have about 8,000 homes approved to be built today, but developers aren’t building due to labour shortages, supply issues, and more. Bill 23 does not fix this issue.
Aren't the Town's fees charged to developers making new homes less affordable?
There’s a misconception that the Town's development charges and parkland fees are making new homes more expensive. In reality, developers set the price of new homes at the highest amount the market will pay. It’s the market – not the fees – that determine the price. Bill 23 does not dictate that developers reduce housing prices by the “savings” created by the Bill. Any “savings” will go directly to developers, with no guarantee that homes will be built or that they will be affordable.
In Whitby, we have about 8,000 homes approved to be built today, but developers aren’t building due to labour shortages, supply issues, and more. Bill 23 does not fix this issue. Whitby is ready to work with the Province and developers to get houses built, but not at your expense.
What does Bill 23 mean for the protection of environmentally sensitive areas in the Ontario?
Bill 23 makes radical changes to the important role Conservation Authorities have in the planning process, putting the protection of environmentally sensitive areas at risk.
How does Bill 23 impact municipal management of growth?
Bill 23 changes municipal governance and planning approvals by removing the tools we need to manage growth responsibly. The Bill eliminates things like public meetings for approval of planned subdivisions. These checks and balances ensure we grow in a manageable way.
What impact does Bill 23 have on funding for municipal infrastructure like parks, libraries, and fire halls?
Initial analysis shows Bill 23 will cost Whitby taxpayers $34 million per year; shifting costs of growth for things like parks, new roads, and recreational facilities directly from developers to you. Unless offset with a new source of funding, Bill 23 will significantly impact our ability to fund growth and the infrastructure needed to support our growing community.
What is the Town doing to address housing supply in Whitby?
On March 20 (2023), Whitby Council pledged to facilitate the development of 18,000 new homes by 2031.
In October 2022, Minister of Municipal Affairs and Housing Steve Clark issued a letter to the Town of Whitby highlighting the Province’s commitment to build 1.5 million homes by 2031 and assigning Whitby a municipal housing target of 18,000 homes.
The Town of Whitby was asked to demonstrate its commitment by developing a municipal housing pledge and delivering it Minster Clark by March 22, 2023.
Whitby’s current inventory of housing units approved or in the approval process includes 4,123 low density units, 4,925 medium density units and 9,070 high density units.
The pledge endorsed by council on March 20 lays out several strategies for accelerating Whitby’s housing supply including:
Whitby Council has also requested further dialogue with the Province on Bill 23 and the impacts that development change shortfalls could have on future Town budgets.
What Happens to Property Taxes After a Province-Wide Reassessment?
When there is a province-wide re-assessment that increases the overall assessment values in the Town, Whitby, like all municipalities in Ontario, will reduce the property tax rates in order to collect the same amount of property taxes as a starting point for the budget.
Property owners with re-assessments at the average of the MPAC increases should not see a change in their property tax bills due to re-assessment. While property owners with re-assessments that are lower than average or higher than the average re-assessment changes, should see a decrease or increase, respectively, to their tax bills due to province-wide re-assessments by MPAC. More information on how re-assessments work and the impact to taxes/tax rates is available in this video created by MPAC: