Property tax deferral program
The City of Ottawa offers two deferral programs for property taxes for low-income seniors and low-income people with disabilities. Eligible homeowners may apply for a full or partial deferral of their annual property taxes. Existing applicants must apply to the program annually and verify continued eligibility.
You may apply for the program as follows:
- Full property tax deferral
- Partial property tax deferral
Full Property Tax Deferral Program
Under this program, the City defers payment of annual property taxes, at a reduced interest rate, for applicants who meet the current program requirements.
Property taxes may be paid up to date or in arrears at the time of application. There is no deadline for first-time applicants.
Program requirements
- If the property is owned by more than one person who are not spouses, then all owners must apply and qualify.
- Applicant(s) must have continuously owned the property within the City of Ottawa for at least one year before applying for deferral.
- Must be principal residence of applicant(s).
- The property must be assessed in the residential/farm property tax class.
- The total cumulative amount of deferred property taxes and water and sewer charges, plus fees and interest, may not exceed 40 per cent of the assessed value of the property.
- The applicant(s)’ total gross household income from all sources is $43,561 (for 2020) or less. This amount includes income of all residents in the home. The threshold will be increased annually and is based on the annual Consumer Price Index (CPI).
- Applicants shall submit a renewal application annually no later than the 1st day of July in the year the deferral is sought.
Low-income seniors
In addition to meeting the program requirements, an applicant applying for tax deferral, or the applicant’s spouse, must be at least 65 years of age and be eligible for benefits under Old Age Security (OAS) pension.
Low-income people with disabilities
In addition to meeting the program requirements, an applicant in this category must either:
- be receiving on-going disability benefits (such as, the Ontario Disability Support Program), or
- be eligible to claim a disability amount on your Canada Revenue Agency Income Tax and Benefit Return
Terms of the deferral program
- A non-refundable application fee will be charged to the tax account upon receipt of the application.
- A non-refundable renewal fee for subsequent year applications, will be charged to the tax account.
- Interest on the deferred amounts will be charged at the rate of 5% per annum. These costs will be charged to the tax account.
- Approved applicants are responsible for all legal costs associated with the deferral. Legal costs typically relate to title searches, as staff may conduct an annual title search on the property. All legal costs will be charged to the tax account.
Repayment of deferred property taxes
The deferred taxes shall become due and payable at the earliest of the following dates:
- When the applicant(s) no longer meet eligibility criteria such as income;
- When the property is sold or transferred;
- Upon the death of the applicant, unless the applicant is survived by a spouse who continues to qualify for deferral (The tax deferral cannot be transferred to the estate of deceased owner(s));
- When the total cumulative amount of deferred property taxes and water and sewer charges, plus fees and interest, exceeds 40 per cent of the assessed value of the property.
How to apply
Applicants must complete and submit an application along with the supporting documentation to apply for the tax deferral program. Included in the application is a waiver providing the City of Ottawa, Revenue Services access to personal information.
There are a number of ways to apply for low-income seniors and low-income people with disabilities under the Full Property Tax Deferral Program:
- Print a copy of the application
- Contact us by e-mail at taxdeferralprogram@ottawa.ca
-
Send your request in writing to
City of Ottawa, Revenue Services,
100 Constellation Drive, 4th floor East,
Ottawa, ON K2G 6J8
Attn: Property Tax Deferral Program - Send your request by fax to 613-580-2457
- Drop in to 100 Constellation Drive 4th floor East (this option is currently not available in person due to COVID-19 closures)
- Telephone us at 613-580-2740 (TTY 613-580-2401) Transactions will be recorded for training and verification purposes
To Return the application form
Please write the property address and tax roll number on all correspondence. Once the form is filled out, return:
-
Mail or deliver to:
City of Ottawa, Revenue Services,
100 Constellation Drive, 4th floor East,
Ottawa, ON K2G 6J8
Attn: Property Tax Deferral Program - by fax to: 613-580-2457, Attn: Property Tax Deferral Program
- by email at taxdeferralprogram@ottawa.ca
An acknowledgment letter will be mailed to you, upon receipt of your application. Once we have reviewed your application for eligibility, a letter of either approval or denial will be mailed to your attention.
Partial Property Tax Deferral Program
The City also offers a partial deferral of property taxes to low-income seniors and low-income people with disabilities. Relief is based on the total tax increase over the previous year rather than a total deferral program as noted above. Both program requirements and relief differ from the Full Property Tax Deferral Program. Details of this program are as follows:
Program Requirements
- Property taxes must not be in arrears.
- Application for relief is made annually to establish eligibility or confirm continued eligibility; the application must be made by December 31 in the year that the tax relief is being requested.
- Applicant(s) must have continuously owned the property within the City of Ottawa for at least one year before applying for tax deferral.
- Property is assessed at $500,000 or less and is in the residential/farm property tax class.
- The applicant’s total gross household income from all sources is $30,000 or less.
- Real property tax increase must be greater than $100 and 5% over the real property taxes of the previous year.
- Must be principal residence of applicant(s).
- Must meet one of the following criteria:
- be 65 years of age or more by December 31 of the year prior to the year for which the application for tax relief is made, OR
- be receiving on-going disability benefits (such as, the Ontario Disability Support Program) or be eligible to claim a disability amount on your Canada Revenue Agency Income Tax and Benefit Return.
- The applicant agrees to provide the necessary information to the municipality in order to demonstrate that eligibility requirements have been met.
- The applicant signs a waiver providing the municipality access to personal information for the purpose of confirming eligibility.
Relief
- Relief is based on the total tax increase over the previous year.
- Any amount deferred under this program for taxation years before 2001 is subject to the annual interest rate which is the lower of either the bank prime rate plus ½ percent (.5%) or a rate established by provincial regulations. No such interest may be charged for 2001 or subsequent taxation years.
- Total amount of tax relief available is restricted to a maximum of 75% of the current assessed value of the property.
Repayment of Partial Tax Deferral
Deferral amounts represent a lien against the property under provisions established under Subsection 319 (4) and Section 349(3) of the Municipal Act 2001 as amended.
The unpaid partial tax deferral shall become due and payable at the earliest of the following dates:
- the applicant(s) no longer meet eligibility criteria;
- the property is sold or transferred;
- upon the death of the applicant, unless the applicant is survived by a spouse who continues to qualify for tax deferral.
How to apply
Applicants must complete and submit an application along with the supporting documentation to apply for the tax deferral program. Included in the application is a waiver providing the City of Ottawa, Revenue Services access to personal information.
There are a number of ways to apply for low-income seniors and low-income people with disabilities under the Full Property Tax Deferral Program:
- Print a copy of the application
- Send your request to the City of Ottawa by email at taxdeferralprogram@ottawa.ca
-
Send your request to us in writing to the
City of Ottawa, Revenue Services,
100 Constellation Drive, 4th floor East,
Ottawa, ON K2G 6J8
Attn: Partial Property Tax Deferral Program. - Send your request by fax to 613-580-2457.
- Drop in to City office at 100 Constellation Drive, 4th floor East, Ottawa, ON.
- Telephone us at 613-580-2740 (TTY 613-580-2401). Transactions will be recorded for training and verification purposes.
Returning the Partial Property Tax Deferral Application Form
Please write the property address and roll number on all correspondence. Once the form is filled out, return:
-
by Mail or deliver to:
City of Ottawa, Revenue Services,
100 Constellation Drive, 4th floor East,
Ottawa, ON K2G 6J8
Attn: Partial Tax Deferral Program, or - by fax to: 613-580-2457, Attn: Partial Tax Deferral Program or
- by email at taxdeferralprogram@ottawa.ca
An acknowledgment letter will be mailed to you, upon receipt of your application. Once we have reviewed your application for eligibility, a letter of either approval or denial will be mailed to your attention.
The City of Ottawa also offers a water utility bill deferral program for low income seniors and persons with disabilities.