When you own a home in Montreal, you get two distinct property tax bills in the mail each year:
- Your Municipal Tax bill
- Your School Tax bill
While they both feel like money leaving your bank account, they go to completely different places and pay for completely different things. Let’s break it down into simple terms!
1. What is Municipal Tax?
Think of municipal taxes as the monthly fee to keep your city and borough running smoothly. The City of Montreal collects this money to pay for services you use every single day.
What it pays for:
- Emergency services (police and firefighters)
- Snow removal and street repairs
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Public transit (bus and metro networks)
- Trash, recycling, and compost collection
- Local parks, public libraries, and community pools
How it works: The city estimates the value of your home on an official document called the Property Assessment Roll (rôle d’évaluation foncière). They update this value every 3 years. Your municipal tax bill is calculated by taking this assessed value and multiplying it by the local tax rate set by the city and your specific borough.
2. What is School Tax?
In Quebec, school tax is separate from city tax. It goes directly toward supporting public education across the province.
What it pays for:
- Maintaining local school buildings and classrooms
- Heating, lighting, and keeping schools safe
- Supporting school board operations (like English and French public schools)
How it works: Unlike municipal tax rates, which change depending on which Montreal neighborhood you live in, school tax rates are standard across the entire province of Quebec. The Quebec government sets one single rate for everyone. It is sent out by the school tax collector (Comité de gestion de la taxe scolaire de l’île de Montréal if you are on the island).
3. Why Do I Get Two Separate Bills?
It simply comes down to who is managing the money:
- The City of Montreal manages your municipal services.
- The Province of Quebec / Local School Boards manage public schools.
Because they are two different organizations with two different budgets, they send their bills at different times of the year!
Key Takeaway for Montreal Homeowners
Your property taxes are directly tied to your home’s assessed market value, not what you personally paid for the property. If your property’s assessed value goes up on the next city evaluation roll, your property taxes will usually go up, too!
Have questions about your property’s assessment value, or thinking about buying or selling this year? Reach out anytime—I am always here to help you make sense of the Montreal real estate market!