How to work out the tax on a home
Every town sets a mill rate each year. One mill is $1 of tax for every $1,000 of assessed value, so the formula is simple:
Property tax = assessed value × mill rate ÷ 1,000
Then add the town’s yearly water and sewer fee if the home is connected, and any other flat fees, like garbage. A few towns also have a minimum tax, which only matters for very low assessments.
For example, a home in Mount Pearl assessed at $375,000: $375,000 × 7.7 ÷ 1,000 = $2,887.50 in property tax, plus $625 for water and sewer, for about $3,513 a year.
2026 rates by town
Residential rates for 2026, with the yearly total for a home assessed at $375,000 that’s connected to town water and sewer.
| Town | Mill rate | Minimum tax | Water & sewer / yr | Total on $375,000 |
|---|---|---|---|---|
| St. John’s | 9.1 | — | $700 | $4,113 |
| Mount Pearl | 7.7 | $200 | $625 | $3,513 |
| Conception Bay South | 7.6 | — | $665 | $3,515 |
| Paradise | 7.4 | $20 | $625 | $3,400 |
| Torbay | 7.7 | $100 | $375 | $3,263 |
| Petty Harbour–Maddox Cove | 7.2 | $750 | $420 + $125 garbage | $3,245 |
| Portugal Cove–St. Philip’s | 6.6 | $20 | $695 | $3,170 |
| Logy Bay–Middle Cove–Outer Cove | 4.9 | $100 | None (wells & septic) | $1,838 |
“—” means the town’s 2026 schedule doesn’t list a minimum. Totals are rounded to the dollar.
If the home isn’t on both water and sewer
- St. John’s uses a lower mill rate instead: 8.6 mills with only water or only sewer, and 8.1 mills with neither. The $700 water tax applies per unit.
- Paradise: $312.50 for water only or sewer only.
- Torbay: $225 for water only, $150 for sewer only.
- Portugal Cove–St. Philip’s: $465 for water only, $230 for sewer only. Many homes outside the serviced areas are on wells and septic, which the owner maintains.
- Petty Harbour–Maddox Cove: $220 for water only, $200 for sewer only.
- Logy Bay–Middle Cove–Outer Cove has no town water or sewer, so there’s no fee.
Mount Pearl, Paradise and CBS also charge a small yearly garbage cart fee ($20, $25 and $20 per cart), which isn’t included in the totals above.
Where the assessed value comes from
The assessed value isn’t the list price or what you paid. It’s an estimate of market value as of a set base date, so it often lags the market.
- St. John’s does its own assessments. Tax bills for 2026 and 2027 use a base date of January 1, 2024. You can look up any property on the City’s assessment search.
- Every other town on this list is assessed by the Municipal Assessment Agency. Search by town and address on the MAA assessment search.
Appealing an assessment
If you think your assessment is too high, you have 60 days from the date on your assessment notice to appeal, and late appeals aren’t accepted.
- In St. John’s, appeals go to the City Clerk. The fee is $60 for a residential property and is refunded if the appeal succeeds.
- In MAA towns, you appeal online, and the deadline is printed on your notice. The fee is refunded if the appeal is upheld.
Recent sales of similar homes nearby are the strongest evidence.
Discounts for seniors and low incomes
Most towns reduce the property tax portion (not water and sewer) for a principal residence if you qualify. You usually need to apply every year.
- St. John’s and Mount Pearl: 25% for owners receiving the Guaranteed Income Supplement.
- Torbay: 25% with the Guaranteed Income Supplement, or 20% for low incomes.
- Conception Bay South: 25% for seniors receiving the Guaranteed Income Supplement and for low-income households.
- Paradise: 25% for low incomes. This replaces the old seniors’ discount.
- Portugal Cove–St. Philip’s: 20% with the Guaranteed Income Supplement or for low incomes.
- Logy Bay–Middle Cove–Outer Cove: 50% if the owners’ combined income is $32,500 or less.
Income limits and deadlines vary, so check with the town.
What this means when you buy
- Budget for it monthly. Most towns offer an interest-free monthly payment plan. If you’re comparing homes in different towns, the difference can be several hundred dollars a year.
- Ask for the actual tax bill. The listing may show last year’s figure, and the assessed value may have changed since.
- Count the units. A home with a basement apartment usually pays water and sewer for each unit. Our two-apartment homes guide covers what else to check.
- Expect an adjustment at closing. If the seller has already paid the year’s tax, you’ll usually reimburse them for the days after closing, and your lawyer works this out. See Closing Costs When Buying a Home in Newfoundland.
- Well and septic homes skip the water and sewer fee, but you’re responsible for maintaining them.
