The value of a building on the assessment roll corresponds to its exchange value on a free market that is open to competition. This value is the most probable selling price that a potential buyer would pay in a direct sale. 

Factors that influence the valuation of your property

To determine real property value, the city’s assessor takes into account real estate market conditions 18 months prior to the coming into force of the property assessment roll. For the 2026-2027-2028 rolls, this date is July 1, 2024. 

The main factors that determine property value are: 

•  Location 
• Lot surface area 
• Size of the building(s)
• Age of the building(s), adjusted for any major renovations or additions
• Construction quality 
• Income generated on the property, if any

Changes to ownership 

Québec’s Act respecting municipal taxation stipulates that property assessment rolls must be kept up to date to reflect changes to property and buildings (e.g., changes in ownership, new construction, renovations). 

Rolls are updated to reflect such changes retroactively to the date of the change(s) or the date on which renovation or other work was completed, without exceeding the fiscal year preceding the current year. 

Some projects may result in a property value increase, such as: 

•  Renovations to a kitchen or bathroom 
• Expansions 
• Building/renovating a basement 

On the other hand, regular maintenance work such as repairing the roof, painting or replacing a floor is unlikely to have an impact. 

If your property is subject to changes to the assessment roll, you will receive a change notice to inform you of the changes and the reasons for the update. 

Valuation of lots, buildings and property 

Property assessment roles distinguish between 3 elements that are based on real estate market data: 

• The property value is calculated based on the sale price of types of property with similar characteristics
• The lot value is assessed based on the sale price of comparable vacant lots
• The  value of the building is the value of the property minus the value of the lot 

This mainly concerns residential buildings with 5 dwellings or fewer. Distinctions exist for non-residential buildings. 

The value of the property, which represents the sum of the values of the lot and the building, is used to calculate municipal tax and school tax. 

Assessment methods 

To determine real property values for the assessment rolls, the assessor analyzes the real estate market as it was 18 months prior to the coming into force of the assessment roll and uses one or more of the following assessment methods: 

• Cost method: Establishes the replacement cost of the building as new, from which any form of depreciation is subtracted and to which is added the market value of the lot.
• Comparison method: Determines the most probable selling price of the property by comparing it to similar types of property in the same neighbourhood.
• Income method: Estimates property value using the net income the property can generate, discounted at a rate derived from the market for similar types of property that have been sold.