Understanding Property Taxes

Property taxes are charged each year around mid-May and billed for the calendar year (January to December). City property taxes help fund local services and programs such as:

• Roads
• Parks
• Emergency services (fire protection and police)
• Leisure and cultural services

The tax rates are based on the funds needed to provide services for the year and are set to determine how to share the cost of providing the services.

The City also collects funds on behalf of other local public entities to support their programs and services, such as:

• Regional District of Nanaimo
• Vancouver Island Regional Library
• Nanaimo Regional General Hospital
• Schools
• BC Assessment Authority
• Municipal Finance Authority

For questions about the charges collected on behalf of these entities, please contact the entity directly. 

Property taxes are always due on the first business day in July.

How Property Taxes Are Calculated

The property tax amount is calculated using:

• The property's taxable assessed value (determined by BC Assessment)
• The tax rate for the property class
• Applicable parcel taxes, business improvement area levies or local area service charges

The City's tax rates are set annually as part of the City's budget process.

The Relationship Between Property Taxes and Property Assessment

An increase (or decrease) in the property's assessed value does not mean the same change to the property taxes.

What matters most if how the property's assessed value changed compared to the average for similar properties in the same classes. 

The information below explains how changes in assessed value relate to the municipal portion of property taxes only. Other charges that appear on the tax notice are set by external organizations and may change independently.

Here's How It Works

Property taxes are calculated using:

• Property's assessed value
• The City's tax rate
• How the assessment compares to the average change in the same property class

Because of this, changes in the assessment and changes in the tax notice do not always move in the same direction.

• The average assessed value for a single-family residence increased by 0.87% due to market changes
• The City's property tax budget increase for 2026 was 6.4%

What this could mean for the average single-family home:

• If the property value increased by the average (0.87%), the municipal taxes will likely increase by the municipal tax budget increase of 6.4%
• If the property's value increased by more than the average (0.87%) the municipal taxes will likely increase by more than 6.4%

Who is Responsible for Paying Property Taxes?

The registered owner(s) is responsible for ensuring property taxes are paid by the due date.

When Property Taxes Are Due

Property tax notices are issued once per year.

• Taxes must be paid by the annual due date to avoid penalties
• Payment deadlines apply regardless of the payment method
• Penalties are applied to overdue balances as required by legislation
• An application for tax deferment or Home Owner Grant received by the Province of BC after the due date may lead to late payment penalties

Payment Options

The City offers serval ways to pay property taxes, including online banking, pre-authorized withdrawals, mail and in-person options.

Visit Payment Options for details on available payment methods.

Important: Credit cards and e-transfers are not accepted for property tax payments.