The annual municipal tax time is upon us. Ratepayers are looking gloomily toward their city halls as councils determine their 2025 budgets and tax bills. As councillors now understand, and residents are beginning to comprehend, municipalities need to change how they are financed. The current system that depends on property taxes does not work.

2024 was a tough year for many civic budgets. 2025 is not bringing much relief.

Here is an arbitrary scan of fifteen Canadian municipalities and their confirmed (or in a few instances proposed) property tax increases for the current fiscal year:

The list reveals a couple of vital facts: first, there are considerable variations in the needs of local communities and their ability to fund capital and operating costs; second, property taxes are an inadequate and outdated method of financing modern Canadian towns and cities.

An increasing number of homeowners are struggling to pay their local property taxes. They question whether the costs are sustainable.

For example, in the typical four-year term of an elected council, if the annual tax increase is 6%, then that council has increased local property taxes by more than 26% during its term in office.

City councils are facing tough realities in their budgets. And if Donald Trump imposes draconian tariffs on Canada, and we retaliate, costs for businesses and consumers will rise, potentially significantly. The expenses to run a city are going to increase even beyond the 2025 budget plans.

It is another very tough budget year for cities.

How much more stress will taxpayers accept?