As a Percentage of GDP, Canada Has Some of the Highest Property Taxes in the World

New data shows that Canada had one of the highest property tax revenues in the world in the 2021/2022 taxation year, as the country’s economy bounced back from the effects of the pandemic.

This is according to the 2022, Global Property Tax Rankings from Altus Group. The company’s findings are based on an in -depth analysis of taxation revenues of 38 member countries across the world, and are a reflection of each country’s property taxes as a percentage of gross domestic product (GDP).

“Unsurprisingly, taxation revenues bounced back as economies across the developed world recovered from the initial impact of the coronavirus and investment,” the report explains ahead of the data. “Whilst many of the emergency tax measures introduced to support both households and businesses during the pandemic were either withdrawn or tapered off.”

“Taxes on property, for both individuals and businesses, are broadly specking recurrent and non-recurrent taxes on the use, ownership or transfer of property and are based upon taxation revenues in the preceding calendar year or the 2021/22 fiscal year depending upon how Governments show their data.”

Although South Korea led the pack with the highest property tax ranking of any country examined, Canada and Luxembourg followed closely behind, both reporting 4% of GDP from property taxes.

While property taxes in Canada have been gradually increasing since the 2012/2013 taxation year, the report stipulates that, “property axes as a percentage of overall taxation has largely remained consistent at 11.9%.”

Comparatively, the US and UK are experiencing a gradual decline in property taxes as a percentage of overall taxation, with property taxes in both countries falling to the lowest level in a decade – save for the 2017/2018 taxation year in the US, when property tax revenue was skewered “due to a reclassification.”

Written By: Zakiya Kassam

Source By: STOREYS