TIPP is the Tax Installment Payment Plan that allows property owners to pay their Property Tax in 12 monthly installments, rather than a single annual payment.
Many of our lenders will also offer this service directly and include the tax portion as part of your monthly payment. Please note, the TIPP program is not available in all provinces or municipalities.
How does TIPP work?
Payments are made on the first of each month by automatic withdrawal from a bank account.
A monthly payment is calculated by dividing your annual tax levy by 12. The program begins January 1st; however you may join at any time during the year. Your payment amount will be adjusted on June 1st to compensate for changes in taxes as a result of the annual tax levy in May. You will be notified of the total amount of installments paid to date and the new installment amount for the remainder of the year.
Is there a charge to join?
Not all cities offer the TIPP program, but those that do participate do not charge for this service if you start the program January 1. If you join after January 1 there is a 2% filing fee based on the missed installments. An initial payment of the missed installments plus the filing fee must be paid at the time of application.
If you are purchasing a home that is currently on TIPP, you may continue the program by contacting the TIPP Customer Service Centre. We are always happy to help you get set up so just ask!
What if an adjustment is made to my tax account?
Adjustments to your tax account may be made during the year due to a decrease or increase in your assessed value. You will be given 30 days notice unless other arrangements have been made. They work as follows:
The monthly installment will continue until your account is paid in full. The final installment will bring your account to a zero balance.
The monthly installment will automatically be adjusted for increases received prior to November. After November 1, increases are due and payable by the due date or you may contact the TIPP Customer Service Centre for alternate arrangements.
In December all accounts are reviewed. If an adjustment is made to your account you will be notified.
Supplementary Taxes and TIPP
A supplementary tax bill is issued when a building or residence is completed or has had additional construction in the current tax year. If you receive a supplementary tax bill your TIPP payment will automatically be recalculated and your monthly installment adjusted to account for this bill.
Two week written notification is required
- To change banking information, you need to provide a new ‘VOID’ cheque
- To stop withdrawals when your property is sold
- To cancel the program for any other reason
- If you withdraw or your plan is canceled, all unpaid taxes are due and payable, subject to penalties in accordance with the Penalty By-law. TIPP payments are neither refundable nor transferable
If any payment is missed, The City has the option to cancel the agreement and request payment of the total outstanding taxes.
To join TIPP you need to…
- Have a bank account
- Fill out an application
- Provide a sample cheque marked “VOID”
NOTE: Line of Credit and credit card accounts CANNOT be used for the TIPP program. If you pay Principal Interest and Taxes (PIT) to a mortgage company you must contact them prior to joining TIPP otherwise you will overpay your tax account (two monthly payments would be made in this case).