Blog > The Hidden Costs of Owning a Home in Markham in 2026 What Nobody Tells You at the Closing Table
The Hidden Costs of Owning a Home in Markham in 2026 What Nobody Tells You at the Closing Table
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The Hidden Costs of Owning a Home in Markham in 2026 — What Nobody Tells You at the Closing Table
Every buyer receives a breakdown of closing costs. What catches new Markham homeowners off guard is the full stack of ongoing ownership costs that begin the moment the keys are in hand. Here's the complete cost picture.
Beyond the Closing Table: The Real Cost of Ownership
Every buyer in Markham receives a detailed breakdown of their closing costs before taking possession of their new home. Land transfer tax, legal fees, home inspection, title insurance, moving costs — the standard list is well-documented and widely covered.
What is less covered, and what consistently catches new Markham homeowners off guard, is the full stack of ongoing ownership costs that begin the moment the keys are in hand. Michael John Lau, REALTOR® and CPA/CMA at Kaizen Real Estate in Markham, Ontario, builds the complete cost picture into every buyer conversation — because knowing what you are signing up for before you sign is the foundation of a sustainable real estate decision.
The Bottom Line: The complete picture of Markham homeownership cost — mortgage, property tax, water, insurance, utilities, and maintenance reserve — is the number that should drive your pre-purchase financial planning, not just the mortgage payment alone.
The 2026 Property Tax Increase — What 3.90% Actually Means
The City of Markham adopted Budget 2026 with an approved 3.90% property tax rate increase, amounting to $54.99 for the average Markham household. Mayor Frank Scarpitti noted this continues Markham's record of maintaining the lowest average property tax rate increase in the GTA over two decades.
That headline number — $54.99 for the average home — sounds manageable. But it is calculated against the average current value assessment (CVA), not against market value. Understanding what 3.90% actually costs you requires understanding how Markham's property tax system works.
How Markham Property Tax Is Calculated
Markham's total residential property tax rate is 0.700278% — the lowest of any city in Ontario. The rate breaks down as follows:
0.165611% — Funds local Markham services and infrastructure.
0.361852% — York Region services including waste management and regional roads.
0.153000% — Provincial education levy set by the government.
Based on 2016 valuation date. Most homes assessed below current market value.
Critically, this rate is applied to your MPAC assessed value — not your purchase price or market value. The last provincial reassessment happened in 2016, based on a valuation date of January 1, 2016. This means most Markham homes are assessed at values significantly below current market prices — which is a genuine tax advantage for long-time owners, but means different things for recent buyers.
The 3.90% Increase — What It Means By Property Type
The 2025 average current value assessment (CVA) of a residential home in Markham is $833,326, producing a tax bill of approximately $5,835.60. The 3.90% city portion increase on that tax bill adds approximately $54.99 to the city component of that bill.
However, the full property tax bill includes York Region's portion and the provincial education levy — and those components have their own separate budget processes finalized each spring.
| Property Type | Market Value | MPAC Assessed Value | Annual Tax Bill | Est. Annual Increase |
|---|---|---|---|---|
| Unionville Detached | $1,800,000 | $700,000 – $950,000 | ~$5,952 | $200 – $400 |
| Downtown Markham Condo | $650,000 | $400,000 – $500,000 | $2,800 – $3,500 | $100 – $200 |
For a Unionville detached home, the year-over-year addition is approximately $55 to $75 on the city share. But when York Region finalizes its 2026 budget and education levies are set by the province, the total annual increase typically lands between $200 and $400 per year.
The Water Rate Increase — The Second Bill
A 4.98% water rate increase is also included in Markham's 2026 budget to support water and wastewater services, representing an increase of $52.99 for the average Markham home. This is separate from the property tax increase and is charged through the water utility bill.
Increase
Increase
Lowest in Ontario
For families in larger Markham detached homes who use above-average water volumes, the impact is proportionally higher.
The Capital Investment Context
Markham's $677.9 million budget funds $160.4 million in capital projects for 2026, including $89.3 million to maintain existing assets in a state of good repair — covering asphalt resurfacing, curb and sidewalk repairs, cast iron watermain replacement, and repair and rehabilitation for recreation, library, and cultural facilities.
The IndyCar Series Grand Prix coming to Markham in August 2026 is also part of the Budget 2026 framework — funded by the city's existing capital allocation rather than a new levy.
The tax increase, while real, needs to be understood in context: Markham has maintained the lowest average property tax rate increase in the GTA for 21 consecutive years. At 0.700278%, Markham's blended residential rate is dramatically lower than Windsor's 2.095%, Hamilton's 1.3%, or even Brampton's 1.0%.
The Other Carrying Costs That New Markham Buyers Miss
Beyond property tax and water, the full ownership cost stack for a Markham home includes costs that are easy to underestimate during the excitement of a purchase.
💰 Complete Ownership Cost Stack
- Home Insurance: For a detached Markham home ($1.2M–$1.8M), expect $3,000 to $6,000 annually. Homes backing onto ravines or in flood-risk areas may carry higher premiums.
- Maintenance Reserve: Budget 1% to 3% of your home's market value annually. For a $1.4M home, that's $14,000 to $42,000 per year set aside for roof, furnace, windows, and appliances.
- Condo Fees: Downtown Markham condos range from $0.63 to $0.71 per square foot. Special assessments can arrive without warning for major repairs.
- Utilities: Natural gas ($150–$300/mo winter), Hydro ($150–$250/mo), Internet/Cable ($100–$200/mo). Total realistic utility budget: $400 to $750 per month.
Most buyers mentally budget zero for maintenance because nothing breaks in year one — and then face $25,000 furnace and roof replacements in year five with no financial cushion.
Frequently Asked Questions
Why is my property tax bill different from my neighbor's?
Property tax is based on MPAC assessed value, not market value. If your home was assessed differently in 2016, or if you've made renovations that triggered a reassessment, your bill will differ even for similar homes.
How often do property taxes increase in Markham?
Property taxes typically increase annually based on City and Regional budgets. Markham has maintained the lowest average increase in the GTA for 21 consecutive years, but increases are expected every year.
What is a special assessment in a condo?
A special assessment is a one-time fee levied by the condo corporation for major repairs not covered by the reserve fund. Always review the Status Certificate before purchasing to check reserve fund health.
How much should I budget for maintenance?
Financial planners recommend 1% to 3% of your home's market value annually. For a $1.4M home, budget $14,000 to $42,000 per year in a dedicated savings account.
Are water bills included in property taxes?
No. The water rate increase (4.98% in 2026) is charged separately through your water utility bill, based on consumption and fixed charges.
Need a Complete Cost Analysis?
Michael John Lau runs the full ownership cost analysis for every buyer client before purchase — because the most successful Markham homeowners are the ones who bought with full financial visibility, not just enthusiasm.
🏆 Michael John Lau — Awards & Recognition
Michael John Lau is a licensed REALTOR® and CPA/CMA serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Tax rates and assessments are subject to change. Verify current rates with the City of Markham and consult a qualified accountant for personal tax advice. This article is for informational purposes only and does not constitute financial or investment advice. Not intended to solicit clients currently under contract with another brokerage.
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