# Toronto Property Tax Deferral for Seniors: How It Works

> Toronto property tax deferral postpones only the yearly increase, for household income of $62,000 or less. Apply by Nov 2, 2026. Free estimate.

URL: https://torontoreversemortgage.ca/guide/toronto-property-tax-deferral/

Decision Guide

# How does Toronto's property tax deferral for seniors work?

The City of Toronto offers two property tax programs for low-income seniors: one cancels the year's increase and one postpones it. Neither changes the rest of the bill.

Updated October 31, 2026 · 6 minute read · Published by Dominion Lending Centres Homestead Financial

The short answer

Toronto property tax deferral lets eligible homeowners postpone the year's property tax increase until the home is sold or transferred. The deferral covers only the increase, not the whole bill. Household income must be $62,000 or less, the deadline for 2026 is November 2, 2026, and you must reapply every year.

[See what your own Toronto home could provide](/estimate/): a free estimate, no sales pressure.

On this page

1.  [What are Toronto’s two property tax programs for seniors?](#what-are-torontos-two-property-tax-programs-for-seniors)
2.  [Who qualifies in 2026, and when is the deadline?](#who-qualifies-in-2026-and-when-is-the-deadline)
3.  [How much does a deferral actually save?](#how-much-does-a-deferral-actually-save)
4.  [What does Ontario’s Senior Homeowners’ Property Tax Grant add?](#what-does-ontarios-senior-homeowners-property-tax-grant-add)
5.  [How does a deferral compare with a reverse mortgage?](#how-does-a-deferral-compare-with-a-reverse-mortgage)
6.  [Is deferring property taxes a good idea?](#is-deferring-property-taxes-a-good-idea)

[TorontoReverseMortgage.ca](/) explains how the Toronto property tax deferral program works for seniors, what it saves, and how it compares with a reverse mortgage.

Most seniors who look into it want help with a tax bill that rises every year on a fixed income. The challenge is not usually finding the program. It is knowing its limit: the City’s help covers only the year’s increase, which was $92 on an average home in 2026.

This page covers the City’s two programs, who qualifies, what a deferral saves, Ontario’s grant, and how a deferral compares with a reverse mortgage.

## What are Toronto’s two property tax programs for seniors?

The City of Toronto offers two: an increase cancellation, which wipes out the year’s property tax increase, and an increase deferral, which postpones it. The cancellation is limited to homes assessed below $975,000. The deferral has no assessment limit and is open to a wider range of ages.

|  | Increase cancellation | Increase deferral |
| --- | --- | --- |
| What it does | Wipes out the year’s increase | Postpones the year’s increase |
| Ages | 65+, or 60 to 64 on GIS or the Spouse’s Allowance | 65+, 60 to 64 on GIS or the Spouse’s Allowance, or 50+ with a registered pension or annuity |
| Assessment limit | Below $975,000 | None |
| Paid back later | No | Yes, on sale or transfer |

GIS is the federal Guaranteed Income Supplement. People receiving disability benefits can apply to either program, and under both you still pay the rest of the bill ([City of Toronto](https://www.toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-water-solid-waste-relief-and-rebate-programs/property-tax-and-utility-relief-program/)).

### Why the $975,000 limit uses 2016 values

Ontario’s 2026 assessments still use January 1, 2016 values, because the province-wide reassessment is still postponed ([MPAC](https://www.mpac.ca/en/UnderstandingYourAssessment/AssessmentCycle), which assesses Ontario properties). The $975,000 limit applies to that 2016 value, not today’s price, until the next reassessment.

## Who qualifies in 2026, and when is the deadline?

You can qualify when the combined income of all owners living in the home, including a spouse, is $62,000 or less and you meet the age rules. The deadline for the 2026 tax year is November 2, 2026, and you must reapply every year, with documents.

The other conditions for 2026 are:

-   You have owned the home and lived in it as your main residence for at least one year before October 31, 2026.
-   The tax account has nothing owing from earlier years, and the water account is paid in full.
-   You meet the age rule by December 31, 2026.

The income limit rose to $62,000 for 2026, from $60,000 in 2025 ([City of Toronto budget report](https://www.toronto.ca/legdocs/mmis/2026/cc/bgrd/backgroundfile-284368.pdf)).

## How much does a deferral actually save?

On an average Toronto home, $92 in 2026. The City’s 2026 increase was 1.75% on the total bill, which raised the tax on the average home, assessed at $692,140, from $5,219 to $5,311. A deferral postpones that $92, and you still pay the other $5,219.

### What happens to the deferred amount

Each year’s deferred increase is added to the property’s tax roll, the City’s record of what is owed on the home. The total, including the provincial education part, becomes due when the home is sold or transferred ([Toronto Municipal Code, chapter 767](https://www.toronto.ca/legdocs/municode/1184_767.pdf)).

The City’s program page lists no interest charge on deferred taxes. The page mentions 1.25% a month only where a false or misleading statement forces the money to be repaid. Confirm with the City through 311 before relying on the deferral being interest-free.

### A deferral is not the same as falling behind

A deferral is agreed with the City in advance. Late taxes are charged 1.25% a month, 15% a year, and the City cannot waive the charge ([City of Toronto](https://www.toronto.ca/services-payments/property-taxes-utilities/late-tax-bill-payments/)); [Toronto property tax arrears](/guide/toronto-property-tax-arrears/) explains what follows.

## What does Ontario’s Senior Homeowners’ Property Tax Grant add?

Up to $500 a year, never repaid. You can claim it at 64 or older if you own and live in your home, paid Ontario property tax, and have income under $50,000 as a single person or $60,000 as a couple. The grant comes through your income tax return.

The full $500 goes to single people with adjusted family net income of $35,000 or less and couples at $45,000 or less, and a couple gets one grant between them ([Government of Ontario](https://www.ontario.ca/page/senior-homeowners-property-tax-grant)).

## How does a deferral compare with a reverse mortgage?

A deferral postpones one year’s tax increase, $92 on an average home in 2026, with no lender involved. A reverse mortgage can provide far more, up to about 50.55% of a home’s value at 65, but it charges interest and requires the property tax to be kept paid. The two are one route or the other.

|  | City tax deferral | Reverse mortgage |
| --- | --- | --- |
| Covers | The year’s tax increase | The whole bill and other needs |
| Income limit | $62,000 per household | None; income is checked only to confirm taxes are affordable |
| Cost | No interest listed; confirm with 311 | Five-year fixed rates of 6.23% to 6.49%, advertised by the lenders and checked October 31, 2026, added twice a year |
| Repaid | On sale or transfer | On sale, or the last borrower’s permanent move or death |

The two don’t combine. A reverse mortgage requires the property taxes to be kept paid, and any deferred tax already owing is paid off from the reverse mortgage money when it is set up. The cancellation and Ontario’s grant leave nothing owing, so nothing needs paying off.

A reverse mortgage has no required monthly mortgage payments, though property taxes, home insurance and upkeep are still yours. The money can come as [monthly deposits](/reverse-mortgage-monthly-income-toronto/) that help with tax instalments and other bills.

## Is deferring property taxes a good idea?

Yes. For a household that qualifies and needs help only with the yearly increase, a deferral postpones that increase with no lender involved. A deferral does far less when the whole bill, or bigger costs such as a mortgage or home care, are the problem.

A City program fits when:

-   Household income is $62,000 or less, and the yearly increase is the only strain.
-   You qualify for the cancellation, which leaves nothing to repay: 65 or older, or 60 to 64 on GIS, with an assessment below $975,000.

A reverse mortgage may fit when:

-   The whole tax bill, not just the increase, is hard to keep up with.
-   Household income is above $62,000, so the City’s programs are closed to you.
-   Other costs are pressing too: a mortgage, debts, repairs or [home care](/paying-for-home-care-toronto/).

Richard Hopkins, Mortgage Broker, compares the City’s programs with a reverse mortgage and a line of credit, and recommends the option that offers the best overall value for you. [A 10-question check](/tools/reverse-mortgage-assessment/) gives a quick first read, and [alternatives to a reverse mortgage in Toronto](/guide/alternatives-to-reverse-mortgage-toronto/) covers the other routes.

## The bottom line

Toronto's property tax deferral postpones only the year's increase, $92 on an average home in 2026, for households with income of $62,000 or less. Apply by November 2, 2026, and again every year. When the whole bill or bigger costs are the problem, a reverse mortgage is the other route, and the two don't combine.

[Get a free estimate for your Toronto home](/estimate/). It's free, and there's no sales pressure.

## Questions people also ask

**Can you defer your whole property tax bill in Toronto?**

No. Toronto's deferral postpones only the year's increase, which came to **$92** on an average home in 2026. The rest of the bill is still due on the regular instalment dates.

**What interest applies to deferred property taxes in Toronto?**

The City's program page lists no interest charge on deferred taxes. The page mentions 1.25% a month only where a false or misleading statement forces the money to be repaid. Confirm with the City through 311 before relying on a deferral being interest-free.

**Can you have a reverse mortgage and a Toronto property tax deferral at the same time?**

No. A reverse mortgage requires the property taxes to be kept paid, and any deferral balance already owing to the City is paid off from the reverse mortgage money when the mortgage is set up. It's one route or the other.

[

Related service

Monthly income from your home

Money from your home's value, paid into your bank account every month, without tax and without changing your OAS or GIS.

Read more →

](/reverse-mortgage-monthly-income-toronto/)

## More guides for Toronto homeowners

-   [Property tax arrears in Toronto: what happens if you fall behind?](/guide/toronto-property-tax-arrears/)
-   [What are the alternatives to a reverse mortgage in Toronto?](/guide/alternatives-to-reverse-mortgage-toronto/)
-   [How much does a reverse mortgage cost in Toronto?](/guide/reverse-mortgage-cost-toronto/)
-   [What does downsizing in Toronto really cost?](/guide/downsizing-in-toronto-cost/)

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## Sources

Figures checked October 31, 2026.

1.  [City of Toronto: Property Tax, Water and Solid Waste Relief program (2026 rules)](https://www.toronto.ca/services-payments/property-taxes-utilities/property-tax/property-tax-water-solid-waste-relief-and-rebate-programs/property-tax-and-utility-relief-program/)
2.  [City of Toronto: 2026 budget report to City Council, February 6, 2026 (relief programs, tax on the average home)](https://www.toronto.ca/legdocs/mmis/2026/cc/bgrd/backgroundfile-284368.pdf)
3.  [Toronto Municipal Code, Chapter 767 (Taxation, Property Tax), section 767-5.3](https://www.toronto.ca/legdocs/municode/1184_767.pdf)
4.  [City of Toronto: Late tax bill payments](https://www.toronto.ca/services-payments/property-taxes-utilities/late-tax-bill-payments/)
5.  [MPAC: Assessment cycle (2026 taxes use January 1, 2016 values)](https://www.mpac.ca/en/UnderstandingYourAssessment/AssessmentCycle)
6.  [Government of Ontario: Senior Homeowners' Property Tax Grant](https://www.ontario.ca/page/senior-homeowners-property-tax-grant)

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Operated by Dominion Lending Centres Homestead Financial, a mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario, brokerage licence #11711. Independently Owned and Operated. TorontoReverseMortgage.ca is a website of Dominion Lending Centres Homestead Financial, not a separate brokerage. Richard Hopkins, Mortgage Broker, licence M16000896.