The Tax Installment Payment Plan (TIPP) is a popular program which allows you to pay your property taxes on a monthly basis instead of one payment in June. Your payment automatically comes out of your chequing account the first day of every month, making budgeting easier and helping you avoid the risk of a 7% penalty.
How TIPP Works
Each year property taxes are billed in May, due June 30 and cover the period from January 1 to December 31. If you pay through TIPP you don't need to worry about the payment deadline or late payment penalties. Your taxes are spread over 12 months, starting January 1, with your account being paid in full after your December 1 installment.
Your installment amount is calculated by dividing your most recent annual tax levy by 12. This amount is paid through automated withdrawals from your bank account the first day of each month from January 1 to June 1. When you receive your annual tax bill in May your installment will be adjusted to reflect the actual tax levy, ensuring your account is paid in full by year end.
Your tax bill will show:
The TIPP credit-to-date (reflects TIPP payments processed from January - May).
The total tax levy (reflects total taxes for the current year - January 1 to December 31).
The balance owing (reflects TIPP payments to be made from June to December).
The new TIPP payment amount starting July 1.
All installment amounts are reviewed in December to ensure a zero balance.
TIPP automatically continues from year to year as long all TIPP payments are paid up to date.
All installment amounts are recalculated for January 1 (this amount reflects the previous years annual taxes divided by 12).
All TIPP customers receive a letter in December informing them what the new TIPP payment amount will be for January 1.