The City of Montreal recently issued its latest revision to the municipal assessment roll. This applies to residential properties in Montreal, including all 15 demerged on-island suburbs that are part of the Montreal agglomeration.

Assessment values for this current roll for 2026-2028 have increased by 12.2%, which is less than half the increase we saw 3 years ago when they jumped by a whopping 32.4% on the Island of Montreal. Many homeowners will discover that their new municipal evaluation is actually in line with the current market value of their residence, considering the steady appreciation our real estate market experienced over the past three years. 

Municipal assessments are assigned for property taxation purposes. While they are based on historical sales in your neighbourhood, the primary variants used are lot size and building area. They are done every three years, and factors such as landscaping, renovations, and quality of materials are not necessarily taken into account. So, this infrequent and superficial assessment of your home is, at best, an approximation of the value of any given home in your neighbourhood that is similar to yours.

That being said, some municipal assessments can be way off the mark. If you feel that your most recent assessment falls into this category, then there are actions you can take to apply for an adjustment. 

But it isn’t enough to simply disagree with the assessed value; you must be able to prove its inaccuracy.

You must demonstrate that it would have been impossible to obtain the assessed amount in a sale, on the basis of the real-estate market conditions that existed 18 months ago. Although the new roll only comes into effect this January, it is calculated based on what the city evaluators believe it was worth in July of 2024. 

Here are a few reasons why you might want to consider contesting your recent evaluation, especially if you’re thinking of selling in the near future:

1. It Can Negatively Impact Your Sale
If your assessment is higher than your home’s true market value, it can actually work against you when selling. Buyers pay land transfer tax (or welcome tax) based on the higher of the purchase price or the municipal evaluation. If your evaluation is inflated, a buyer may end up paying more tax, which can discourage offers or push buyers to negotiate harder.

2. It Can Make Your Asking Price Appear Too High
On the other hand, if your municipal evaluation comes in too low, it can make your asking price look inflated, even when you are priced perfectly for the market. Many buyers still use the evaluation as a rough benchmark for value, and a wide gap between that figure and your listing price can create doubt, slow negotiations, and lead to lower initial offers.

3. Higher Assessments Can Mean Higher Property Taxes
An obvious reason to contest an inflated evaluation is the impact on your annual property taxes. A significant increase that is not supported by your home’s true condition, features, or recent comparable sales may leave you paying more than your fair share for the full three-year duration of the roll. Correcting it early can save you money over time.

4. Incorrect or Incomplete Information
Municipal evaluations often rely on outdated or incomplete data. Your assessed value may be based on incorrect square footage, an inaccurate number of bedrooms, or presumed improvements that never happened. Conversely, negative factors such as aging components, needed repairs, or outdated interiors may not be considered. When the underlying information is wrong, the final number often is too.

5. Market Conditions Have Shifted
Because municipal evaluations are calculated using data from 18 months ago, the number you receive may not reflect what the market looks like today. If your neighbourhood has softened, or if recent comparable sales show lower values, your assessment may be out of sync with reality. Contesting helps align your evaluation with actual market conditions rather than a historical snapshot.

If you do decide to contest your property assessment, we encourage you to consider the risk vs. reward. You should figure out the answers to these questions first:

-What percentage of a reduction in your valuation can you realistically expect?
-What percentage of a reduction in your taxes might that result in?

-How much money does that translate into?

-How much time and effort will this require?

-What are the costs involved (fees of about $300 for most homeowners for an application for adjustment, professional fees, etc.)?

You can refer to the following link for information from the city about how to apply: 

https://montreal.ca/en/how-to/apply-adjustment-to-municipal-assessment-roll

Once you’ve figured this all out, you can determine whether it’s worth the hassle. Every case is unique! 

If you do decide to go ahead with an appeal, it must be submitted no later than April 30, 2026. Should you have any questions, or if you could use some advice or guidance with regards to this matter, please don’t hesitate to reach out to Team Broady at 514-613-2988 or by email at info@teambroady.ca.