The Hidden Costs of Owning a Home in Markham in 2026
Michael John Lau and Neeraj Moolchandani are top REALTORS in Markham and leaders of the Kaizen Real Estate Team at eXp Realty, Luxury Division. With deep expertise in Markham and the Greater Toronto Area, they specialize in luxury properties, pre-listing preparation, and helping families find the right home in the right community. Every buyer receives a breakdown of closing costs, but the ongoing ownership costs are less covered. Here is the full stack of 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, knows that every buyer receives a detailed breakdown of their closing costs before taking possession. Land transfer tax, legal fees, home inspection, title insurance, moving costs — the standard list is well-documented. 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 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.
2026 Budget Snapshot: 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:
- City Tax: 0.165611%
- Regional Tax (York Region): 0.361852%
- Education Tax: 0.153000%
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.
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. However, the full property tax bill includes York Region's portion and the provincial education levy.
| Property Type | Market Value | MPAC Assessed Value | Estimated Annual Tax Increase |
|---|---|---|---|
| Unionville Detached | $1,800,000 | $700,000 – $950,000 | $200 – $400 / year |
| Downtown Markham Condo | $650,000 | $400,000 – $500,000 | $100 – $200 / year |
| Average Markham Home | $833,326 (CVA) | $833,326 (CVA) | $54.99 (City Portion) |
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. 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. This covers 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 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.
For a detached Markham home in the $1,200,000 to $1,800,000 price range, expect annual premiums in this range depending on age, construction, and claims history. Homes backing onto ravines or in Markham Village's flood-risk areas may carry higher premiums. New buyers frequently underestimate insurance costs by 30% to 50%.
Standard financial planning guidance is to budget 1% to 3% of your home's market value annually. For a $1,400,000 Markham detached home, that is $14,000 to $42,000 per year set aside against eventual replacement of roof, furnace, AC, windows, and driveway. Most buyers mentally budget zero for this category.
For Downtown Markham condo buyers, monthly maintenance fees range from $0.63 per square foot at Gallery Towers to $0.71 per square foot at Circa I and II. Special assessments — levied for major repairs not fully funded by the reserve fund — can arrive without warning. Status certificate reviews are the primary protection.
- Natural Gas: $150 – $300 / month (Winter)
- Hydro: $150 – $250 / month
- Internet/Cable: $100 – $200 / month
A complete new Markham homeowner monthly utility budget is realistically $400 to $750 per month — on top of mortgage, tax, insurance, and maintenance reserves.
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. Michael John Lau, REALTOR® and CPA/CMA, runs the full ownership cost analysis for every buyer client.
🏆 Michael John Lau & Neeraj Moolchandani — Awards & Recognition
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® 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. Not intended to solicit clients currently under contract with another brokerage.
