Blog > POTL vs Freehold in Markham: Do POTL Owners Pay Lower Property Taxes?
No. In Markham, a POTL (parcel of tied land) does not get a lower property tax rate because its condo corporation pays for private road snow clearing, landscaping or waste pickup. Every residential home in Markham is taxed the same way: MPAC's assessed value times the same residential rate, which is 0.700278% in 2026. A POTL tax bill is often smaller only because the home is usually assessed at a lower value than a comparable freehold. On top of that, POTL owners pay a monthly common element fee, so they can end up funding some services twice.
A buyer stands in the kitchen of a bright Markham townhome and asks a fair question. "The fee covers snow and garbage, so the taxes must be lower, right?" It sounds logical. In Ontario, it is not how property tax works.
POTL townhomes are now a big part of new supply in Markham, especially in Cornell, Wismer, Berczy Village and the newer pockets along Highway 7. They often cost less than a freehold of the same size. But the real monthly cost is taxes plus fees, and that is where buyers get surprised.
Michael John Lau is one of Markham's top real estate agents, with 430+ homes sold, a 5.0 rating across 81 Google reviews, and eXp ICON Agent awards in 2024 and 2025. He walks buyers through this exact math before they write an offer. Here is the plain-language version.
| Freehold | POTL | Standard condo townhome | |
|---|---|---|---|
| You own | House and lot | House and lot, plus a share of common elements | Your unit; the corporation owns the land and exterior |
| Monthly fee | None | Usually modest | Usually higher |
| Road and snow | City plows public road | Corporation clears private road; City plows any public frontage | Corporation clears private road |
| Roof, windows, exterior | You | Usually you (check the declaration) | Usually the corporation |
| Property tax rate | 0.700278% | 0.700278% | 0.700278% |
| Purchase form | OREA Form 100 | OREA Form 111 | OREA Form 101 |
| Status certificate | No | Yes | Yes |
Key takeaways
- A POTL is a freehold home tied to a share of a common elements condominium, such as a private road, visitor parking or a parkette.
- Markham taxes POTL, freehold and condo homes at the same residential rate: 0.700278% in 2026.
- There is no tax discount for services the condo corporation pays for. Markham asked the Province for a separate condo tax class in 2010, and the Province kept condos in the residential class.
- Private roads, including condo roads, are not plowed by the City and do not qualify for Markham's windrow program.
- Compare total yearly cost (taxes plus fees), not the tax bill alone.
What is a POTL in Markham?
POTL stands for parcel of tied land. You own your home and the land under it, the same as freehold. But your parcel is tied to a share of a common elements condominium (CEC). The CEC owns shared pieces like a private road, visitor parking, mailbox areas or a small park.
The two cannot be separated. When you sell the house, the share in the condo goes with it. A POTL is bought using its own form, OREA Form 111, and your lawyer will review a status certificate before you firm up.
You will see POTLs most often in newer townhome communities, from Cornell to Angus Glen, where Kylemore's Brownstones townhomes are set up as POTLs. Learn more about buying a home in Angus Glen and Cornell home values.
How are property taxes calculated in Markham?
The formula is simple: MPAC assessed value × tax rate = property tax. For 2026, the residential rate in Markham is 0.700278%, split three ways:
- City of Markham: 0.177477%
- York Region: 0.392412%
- Province (education): 0.153000%
The rate is the same whether you own a freehold, a POTL or a condo. Markham's 2026 budget included a 3.9% increase to the City's portion. MPAC values are still based on January 1, 2016 market values for the 2026 tax year.
Are POTL property taxes lower because the condo pays for snow and garbage?
No. Ontario taxes homes on market value, not on how many City services each home uses. There is no credit for private snow clearing, landscaping or waste pickup.
This question has already been tested. Markham asked the Province for a separate condominium tax class in 2010. The Province pointed to a 2002 provincial review that kept condos in the residential class. A 2014 Vaughan staff report reached the same view, noting that the provincial premise is to tax on market value, not on "the relative use that property owners make of local services."
So where does the belief come from? POTL tax bills are often smaller in dollars. That is because a POTL townhome is usually assessed at a lower value than a similar freehold, with a smaller lot and no private road frontage. The rate is the same. The value is lower.
POTL vs freehold: what does the yearly cost look like?
For a real reference point, the POTL townhomes at Kylemore Communities' Brownstones in Angus Glen carry a POTL fee of $143.88 per month, about $1,727 a year. Here is how that fee compares using Markham's 2026 tax rate. The assessed values are for illustration only.
| Freehold townhome | POTL townhome | |
|---|---|---|
| MPAC assessed value | $650,000 | $600,000 |
| Property tax (0.700278%) | $4,552 | $4,202 |
| POTL fee ($143.88/month) | $0 | $1,726.56 |
| Total per year | $4,552 | $5,928 |
In this example the POTL saves about $350 a year in tax, but the fee adds about $1,727. The POTL costs about $1,376 more per year to carry. In exchange, the owner does not shovel the private road or maintain shared landscaping. Whether that trade is worth it depends on your lifestyle.
Illustrative only. Actual assessments and fees vary by property. Check the real tax bill and status certificate for any home you are considering.
Which City services do POTL owners still get?
It depends on the community, so check each one. Here is what Markham's own rules tell us:
- Snow on private roads: roads the City does not maintain are cleared by the owner of the road. In a POTL, that is the condo corporation, paid for through your fee.
- Windrow program: homes on private roads, including condos, do not qualify for Markham's windrow assistance for seniors.
- Garbage and recycling: some private-road communities receive City curbside collection. Others pay a private hauler through the fee. The status certificate and budget will show which.
- Everything else: parks, libraries, community centres, fire, police and regional roads serve POTL owners the same as everyone else. Your taxes fund those.
A useful way to think about it: POTL owners pay taxes for City-wide services, and the fee covers what the City does not do inside the complex.
POTL or freehold: which is the better buy in Markham?
A POTL may suit you if you want a newer townhome, a lower entry price and less outdoor upkeep. Many downsizers and busy professionals like that the private road and shared areas are handled.
A freehold may suit you if you want no monthly fee, full control of your lot and no condo rules. Freeholds also avoid special assessments and fee increases.
Resale matters too. Some buyers filter out any home with a fee, which can shrink the buyer pool. Others actively prefer low-maintenance POTLs. For a wider view of housing types by area, see the Markham neighbourhood guide or our post on multi-generational homes in Markham.
What should you check before buying a POTL in Markham?
- Status certificate: have your lawyer review it. Look at the reserve fund, the budget, any lawsuits and any planned fee increase or special assessment.
- The declaration: confirm who maintains the roof, windows, driveway and fences. In many POTLs it is you. In some, the corporation handles parts of it.
- Waste and snow: confirm whether the City or a private contractor collects garbage, and how the road and sidewalks are cleared.
- Actual tax bill: ask for the most recent final bill. New homes may still face a supplementary bill based on value at closing.
- Total cost: add taxes, fees, utilities and your own upkeep. Compare that number to the freehold options, not the list price alone.
Selling a POTL in Markham?
Get ahead of buyer questions. Order the status certificate early, list exactly what the fee covers, and show the yearly cost side by side with nearby freeholds. Buyers who understand the numbers make cleaner offers.
Curious what your home could sell for? Start with a free home evaluation in Markham or see how Michael's seller services work.
Frequently asked questions
What does POTL mean in real estate?
POTL means parcel of tied land. You own your home and its land like a freehold, but it is tied to a share of a common elements condominium that owns shared areas such as a private road or visitor parking. The two must be sold together.
Do POTL owners pay property taxes in Markham?
Yes. Each POTL owner gets their own property tax bill from the City of Markham, based on MPAC's assessed value times the residential tax rate, which is 0.700278% in 2026.
Are property taxes lower for a POTL than a freehold?
The tax rate is the same. A POTL bill is often smaller only because the home is usually assessed at a lower value. There is no tax discount for services the condo corporation pays for.
Does the City of Markham plow private roads in POTL communities?
No. Roads the City does not maintain are cleared by the road owner, which in a POTL is the condo corporation. Homes on private roads also do not qualify for Markham's windrow assistance program.
Does Markham collect garbage in POTL townhouse complexes?
It varies by community. Some private-road complexes receive City curbside collection, while others use a private hauler paid through the common element fee. Check the status certificate and the corporation's budget.
How much are POTL fees in Markham?
They vary by community and by what the fee covers. As one example, the POTL townhomes at Kylemore's Brownstones in Angus Glen carry a POTL fee of $143.88 per month. Always confirm the current fee and budget in the status certificate.
Is a POTL a good investment in Markham?
It can be. POTLs often offer newer homes at a lower price than freehold. Compare the total yearly cost, the reserve fund and the resale demand in that community before you decide.
Talk to a Markham REALTOR® who knows these streets
Comparing a POTL and a freehold? Michael John Lau can run the yearly numbers side by side for the homes on your list, so you can choose with confidence.
Call (416) 700-0286Free home evaluationKeep reading
Sources
- City of Markham: Property tax FAQ (2026 rates)
- City of Markham: Winter road services
- City of Vaughan: Condominium Task Force staff report (2014)
- MPAC: The assessment cycle
- Ontario: Parcels of tied land and common elements condominiums
Information is accurate to the best of our knowledge as of October 7, 2026 and may change. Not intended to solicit buyers or sellers currently under contract.