305 properties with taxes more than two years overdue
Posted April 10, 2026
Property tax arrears in New Tecumseth continued to rise in 2025, but remain within what provincial standards classify as a low-risk range, according to a staff report going to council.
As of Dec. 31, 2025, total unpaid taxes represented 7.38 per cent of the town’s annual levy, below the 10 per cent threshold the province considers a low-risk indicator of municipal financial health.
The report shows that while the overall dollar value of arrears increased year over year, the pace of that growth slowed slightly, rising 13.80 per cent in 2025 compared with 14.06 per cent in 2024.
Municipal officials attribute the increase largely to growth in the town’s tax base, which expanded by 4.11 per cent in 2025 through new assessment, supplementary billing and additions to the tax roll.
At the same time, the proportion of properties nearing enforcement action declined.
Taxes eligible for sale — accounts more than two years in arrears — accounted for 0.88 per cent of the total levy in 2025, down from 0.98 per cent in 2024, suggesting fewer properties are progressing to the most serious stage of collection.
As of year-end, 56 properties were in a position for tax sale, including 26 already registered under the province’s tax enforcement process. The remaining 30 properties are either under payment arrangements expected to bring accounts current within two years or are in the final notice stage before registration.
In total, the town identified 305 properties with taxes more than two years overdue as of Jan. 1, 2026, with collection efforts focused on accounts carrying balances above $5,000.
Under Ontario legislation, municipalities can begin tax sale proceedings once taxes have been unpaid for two years. Registration triggers a one-year redemption period during which property owners must pay all outstanding amounts, including penalties and costs, to avoid losing the property.
The report notes that a declining share of the tax levy tied to tax sale-eligible accounts points to improved collection performance over time, even as overall arrears rise alongside a growing tax base.
Staff say they will continue to rely on a mix of reminder notices, interest charges and structured payment plans to reduce delinquencies, while using tax sale proceedings as a last resort.
The town also uses a third-party service provider to manage the legislated tax registration process, which must be completed before any property can be advertised for sale.
Despite ongoing collection pressures, officials say the municipality’s position remains stable, with arrears levels tracking below provincial risk thresholds and enforcement activity concentrated among a relatively small number of properties.
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