Ontario property tax relief for seniors: grants, credits and deferrals

What relief exists for older homeowners in Ontario

Five kinds of help come up most often when people in Waterloo, Kitchener and Cambridge plan a move:

• The Ontario Senior Homeowners' Property Tax Grant, paid through your tax return
• The senior amount of the Ontario Energy and Property Tax Credit, paid as part of the Ontario Trillium Benefit
• Municipal property tax deferrals, which delay payment rather than reduce it
• The MPAC exemption for seniors and persons with a disability, which applies to certain assessed value
• Two credits tied to the home and to care costs: the federal Home Accessibility Tax Credit and the Ontario Seniors Care at Home Tax Credit

None of these is automatic across the board. Most require income tests, an application or a tax return claim. That matters when you downsize, because a smaller home often means a smaller tax bill, and the bigger question becomes which programs you can keep using.

The Ontario Senior Homeowners' Property Tax Grant

The grant is worth up to $500 a year. Per the Ontario government page (updated January 2026), you are eligible if, on December 31 of the previous year, you were an Ontario resident, owned and lived in your principal residence, paid Ontario property tax on it and met the age test, which the page words as 64 or older. Income must also be under $50,000 for a single person or $60,000 combined for a couple.

Between those points the single-person grant is reduced by 3.33 percent for each dollar of income above $35,000. You claim the grant on form ON-BEN, filed with your tax return, at line 61120.

The Ontario Energy and Property Tax Credit, senior amount

This credit is part of the Ontario Trillium Benefit. For the 2026 benefit year the Ontario Trillium Benefit page lists a maximum of $1,488 for the energy and property tax credit component for people aged 65 or older. It is based on your 2025 tax return and payments start in July. The amount changes each year.

The credit is calculated from your return, so it follows you as a person rather than a particular house. Check the Ontario page for how rent, property tax and income feed the calculation, and file your return even in a low-income year so the credit can be assessed.

Property tax deferrals in Waterloo, Kitchener and Cambridge

A deferral lets eligible residents delay payment of tax. A deferral delays payment rather than cancelling it, so ask each city how and when the deferred amount is repaid and whether interest applies. The three cities set different rules.

City of Waterloo

The City of Waterloo runs a tax deferral program for seniors who receive the Guaranteed Income Supplement and for people who receive ODSP. The application form goes to revenue@waterloo.ca. The city says the program follows Region of Waterloo policy, so read the details before assuming what a deferral covers.

Kitchener

Kitchener lists Seniors and Disability Tax Deferrals for people who receive the Guaranteed Income Supplement or ODSP. Per its tax adjustments page, you apply by November 1 of the tax year and reapply each year.

Cambridge

On its taxes page, Cambridge says seniors who receive Old Age Security and a supplement, and ODSP recipients, can apply for a deferral. The deferral is based on the annual tax increase, you must pay a portion, the minimum deferral is $50, and you apply every year after the final bills are issued.

Because you reapply each year and the rules differ by city, a move from one municipality to another ends a deferral and starts a new application. If you have deferred taxes, ask the tax office and your lawyer early what must be settled when you sell.

The MPAC exemption for seniors and persons with a disability

This is a narrow exemption. According to MPAC, it applies to a senior (65 or older) or a person of any age with a disability, in a primary residence with no more than three units. It covers:

• For an existing home renovated after May 15, 1984 where the occupant would otherwise need on-site care, the increase in assessed value from the renovation
• For a custom-built home, 10 percent of the assessed value
• Garden suites

MPAC confirms eligibility every two years. Notice what it is not: a general discount on an older owner's home. If you are planning an accessible renovation and a move later, ask MPAC and your contractor whether an exemption applies before the work starts.

How MPAC assessment works and where reassessment stands

The Municipal Property Assessment Corporation assigns each property an assessed value. Your bill reflects that value and the tax rates your municipality publishes, such as the Waterloo rate below.

MPAC's November 2025 release says 2026 assessments are still based on January 1, 2016 values, because the province-wide reassessment is postponed. MPAC's postponement page carries the background. A future reassessment date is not confirmed on the pages used for this guide, so look at MPAC directly for the current position.

For a downsizer this has two consequences. Your assessment will not track what you could sell for today, and the next home is assessed on the same valuation date, not on its purchase price. So compare homes by their actual tax bills, not by assuming the seller's number carries over to you.

The 2026 City of Waterloo residential tax rate

The City of Waterloo's tax rates page shows a 2026 residential rate of 1.432260 percent. That combines three parts.

As an illustration only, a home with a hypothetical assessed value of $400,000 would carry $400,000 × 1.432260% = $5,729.04 of tax at that rate. Your own assessed value is on your MPAC notice. The city also has an online lookup at webservice.waterloo.ca/PropertyTaxApp, and the rates page is the place to check for changes.

Cambridge's taxes page shows a 2026 combined residential rate of 1.51218 percent. A Kitchener rate is not given here. Check Kitchener's tax pages for the current figure, and see where to downsize if you are still comparing places.

Two credits in brief: home accessibility and care at home

Home Accessibility Tax Credit (federal)

Per the CRA page, the Home Accessibility Tax Credit covers up to $20,000 of eligible expenses a year, is non-refundable and is claimed at line 31285. You must be 65 or older, or eligible for the Disability Tax Credit. The credit rate depends on the lowest federal rate, which has changed recently, so confirm the current percentage before you budget for it.

Ontario Seniors Care at Home Tax Credit

The Ontario page describes a refundable credit for people 70 or older, or with a spouse who is. It is 25 percent of medical expenses up to $6,000, so up to $1,500. It is reduced by 5 percent of family net income over $35,000 and is fully phased out by $65,000 at most. You claim it on form ON479.

What follows you to the next home and what does not

If you are buying a condominium, property tax is billed to you as the owner, while common expenses go to the condominium corporation. Ask what is included in condo fees and what appears on the separate tax bill. See estimating net proceeds for the closing costs around a sale, and costs and taxes for the wider picture.

Before you list: a short checklist

• Ask whether you have a deferral and what must be repaid at closing
• Get your latest MPAC notice and tax bill for the home you are leaving
• Ask for the actual tax bill of any home you want to buy
• Check the Ontario pages for any grant or credit you claim today, since income can change after a sale
• Ask your accountant whether any part of the sale affects your income for next year's claims

The downsizing guide puts these steps in order, and resources lists the offices to call. If you want an introduction to an agent on the operating team at eXp Realty, which is not a search of the whole market, you can ask to be matched.