Property taxes relative to income

Local government revenues are increasingly perceived as inadequate to fund the program responsibilities of municipalities. Property taxes (residential and non-residential) are by far the most important revenue source, accounting for 35% in 2003 (up from 30% in 1988). But, residential property taxes are commonly viewed as regressive in relation to income. This study uses the 2001 Census of Population to quantify the regressiveness of residential property taxes in Canadian municipalities, and to examine whether regressive taxes are generally attributable to lower-income seniors living in high-priced homes.