Worksheet: Factor tax in real estate investing

Tax is a big concern when investing directly in residential or commercial properties. Rates can vary considerably depending on property type and location, so be sure to factor those costs into your buying decisions.

To illustrate, here are 2014 rates for Toronto and Calgary.

Toronto

Example:

Estimated taxes on a residential property with an Assessed Value of $499,521 Estimated property tax = Assessed Value x Residential Tax Rate = $499,521 × 0.7230085%

Calgary

Here’s how to calculate it:

Property tax bill = Assessment x Municipal tax rate + Assessment x Provincial Tax rate