Montreal is experiencing a notable uptick in property assessments across various sectors, such as residential buildings, industrial properties, and shopping centers, leading to potential changes in property taxes.
The latest three-year valuation roll for 2026-2027-2028 released by the City of Montreal reveals an island-wide increase of 12.2% in property assessments. While most property types have seen valuation hikes, office buildings have faced a decline primarily due to high vacancy rates.
These assessments, based on hypothetical sales values as of July 2024, will determine property taxes for the next three years, starting from January 1, 2026. The city clarified that an increase in property value does not necessarily equate to a proportional rise in tax bills, as tax rates and measures are set by the annual municipal budget adopted each fall.
Compared to the previous triennial assessment roll, the current 12.2% increase is described as reflective of “moderate growth” by the city. Industrial properties witnessed the largest surge at 39%, showcasing resilience amidst economic uncertainties. Commercial arteries and shopping centers also saw significant growth at 17% and 4.4%, respectively.
In the residential sector, buildings with fewer than five units experienced an average increase of 9.6%, while those with six or more units saw a rise of 10.9%. Conversely, office buildings faced an 8.2% decline in value.
Notable spikes in property value were observed in areas like Anjou (22.2%), Rivière-des-Prairies–Pointe-aux-Trembles (21.3%), and Senneville, Baie-D’Urfé (20%), among others. Conversely, regions like Westmount, Mount Royal, and Côte-Saint-Luc reported smaller increases due to already high property values in these areas.
The city attributes the moderated growth in property values in certain regions to their existing high property values. These assessments will play a crucial role in determining tax implications for property owners in the coming years.
