Municipal Property Taxes: Compare the Bill, Not Just the Mill Rate

As British Columbians prepare to vote in the October 17 municipal elections, property taxes will inevitably become a campaign issue.

Municipal candidates may promise to “hold the line,” “reduce the tax burden” or even lower taxes.

Before accepting those promises, taxpayers should understand how municipal property taxes are actually calculated, and what a lower tax increase could mean for local services, infrastructure and municipal finances.

An illustrative eight-community comparison across our primary appraisal markets

The following estimates apply each municipality’s 2026 Class 1 residential mill rate to the median single-family sale price (based on MLS sales of detached SFDs from March 1 to August 31, 2025).

Municipality	Median SFD sale price	2026 municipal mill rate	Other municipal levy	Estimated municipal tax
Town of Comox	$855,000	2.28624	$158.73 infrastructure renewal	$2,113.47
City of Courtenay	$857,500	2.83430	—	$2,430.41
Village of Cumberland	$880,000	2.68700	—	$2,364.56
City of Campbell River	$700,000	3.36624	—	$2,356.37
City of Powell River	$613,000	5.17871	$50 residential flat tax	$3,224.55
Town of Qualicum Beach	$923,500	2.74010	—	$2,530.48
City of Parksville	$801,000	2.91250	—	$2,332.91
City of Nanaimo	$810,000	4.12326	—	$3,339.84

The above are illustrative municipal amounts, not actual tax bills. Property taxes are applied to assessed values established by BC Assessment, not to median sale prices.

The comparison also excludes school, regional district, hospital, library, BC Assessment and Municipal Finance Authority levies, as well as utility and parcel charges. The amounts are also stated on a 'gross basis' before homeowner grant deductions.

A lower mill rate does not necessarily mean lower taxes

The mill rate is the amount charged for every $1,000 of taxable assessed value. One mill equals $1 of tax for every $1,000 of assessment.

For example, a mill rate of 2.50 applied to an $800,000 assessment equals:

($800,000/1,000) = 800 x 2.50= $2,000]

It is tempting to compare mill rates and conclude that the municipality with the lowest rate has the lowest taxes. The table shows why that can be misleading.

Qualicum Beach has a relatively low municipal mill rate of 2.74010, but its higher median sale price produces an estimated municipal levy of approximately $2,530. By comparison, Campbell River has a higher rate of 3.36624, but its lower median sale price produces an estimated levy of approximately $2,356.

The tax base matters just as much as the rate.

Municipalities with higher property assessments can generally raise the same amount of revenue using a lower mill rate. Communities with lower assessments may require a higher rate to fund an equivalent dollar amount of municipal services.

Assessment increases do not automatically generate equal tax increases

A municipality begins with the revenue required to fund its approved budget. It then establishes tax rates sufficient to raise that amount across the taxable assessment base.

If every property increased in value by the same percentage, the municipality could reduce its mill rate and still collect the budgeted revenue. The important issue for an individual owner is how their property changed relative to the municipal average.

If your assessment increased more than the community average, your municipal taxes may rise by more than the overall tax increase. If your assessment increased less than average, your increase may be smaller—or your municipal tax could decline.

This is why headlines about assessment increases, mill-rate reductions and percentage tax increases must be interpreted carefully.

Be cautious about election promises to lower taxes

Voters should be particularly cautious when a candidate promises to lower property taxes without explaining exactly how. Municipalities cannot sustainably reduce taxes through slogans. A credible proposal should identify:

• Which expenditures would be reduced

• Which services, staffing positions or capital projects would change

• Whether infrastructure contributions would be deferred

• Whether reserve transfers would be reduced

• Whether costs would move from property taxes to utility or user fees

• Whether the reduction is ongoing or funded by a temporary surplus

• How the proposal would affect debt, asset replacement and future taxpayers

  
  

A tax reduction achieved by postponing road, sewer, water or building renewal is not necessarily a saving. It may simply transfer a larger bill to future taxpayers. Similarly, freezing property taxes while increasing parcel taxes, utility charges or user fees does not reduce the overall cost borne by residents.

That does not mean municipal budgets should escape scrutiny. Councils should continually examine staffing, procurement, service delivery, capital priorities and administrative costs. Candidates should be prepared to challenge unnecessary spending and demonstrate that taxpayers receive reasonable value.

But voters should be wary of any candidate whose promise begins and ends with “I will lower taxes.”

The appropriate follow-up question is simple:

What will you reduce, defer or charge for differently and what will the long-term consequence be?

The most useful comparison is not the mill rate by itself. It is the municipal tax payable, the services delivered, the condition of the community’s infrastructure and the financial obligations being passed to future taxpayers.

When comparing municipal taxes, compare "apples to apples", and when evaluating election promises, ask to see the math.