Take the stress out of paying your taxes and set up monthly prepayments. After you have paid your current property taxes, you can set up monthly prepayments for next year's tax bill.
Simple interest will be paid on your prepayments each month at the Royal Bank prime rate less three per cent (minimum 0.4 per cent) and is credited to your property tax account. This interest is considered a tax discount by Canada Revenue Agency and is tax free.
Follow your financial institution's instructions to set up recurring monthly payments.
- You will earn monthly interest on your payments
- Choose a payment date that works best for you
- An annual property tax notice, mailed to you in mid-May each year, will show the amount due after prepayments and interest earned. Make your final payment and claim your Home Owner Grant (if eligible) by the property tax due date to avoid penalties
- To estimate your monthly prepayment for next year's taxes:
- subtract the amount of your most current year's Home Owner Grant (if eligible) from your most current year's gross taxes to determine the net taxes
- divide the net taxes from step 1 by the number of months remaining until the next property tax due date in July
If you experience technical difficulties, please contact your financial institution for assistance.
Prepay your property taxes in installments through an automatic monthly withdrawal on or after the tenth day of each month with our Pre-Authorized Withdrawal System (PAWS) .
- There are no fees and you will earn monthly interest on your payments
- You can join the plan once outstanding property taxes are paid
- Monthly payments are withdrawn from your bank account on or after the tenth day of each month, starting in July and ending in May
- The final June payment is NOT automatically withdrawn from your bank account. You are responsible to make the final payment and, if eligible, claim the home owner grant by the property tax due date to avoid penalties
- An annual property tax notice, mailed to you in mid-May each year, will show the amount due after prepayments and interest earned
Your monthly payment amount is an estimate based on one-twelfth of your current year’s net tax payable. The amount of your regular monthly payment for the next year will be included on your annual property tax notice.
If you are beginning the PAWS program mid-year, monthly payments can be set at the amount that suits your budget. This will lighten the amount owing at the due date.
Each month, the City of Kelowna will notify your financial institution of the amount of the withdrawal. The City does not charge for this service; however, your financial institution may make a charge for your withdrawal, depending on the type of account you have.
If a withdrawal is not honoured by your financial institution for any reason, your property tax account will be charged a returned item fee.
The final June payment is the amount that is stated on the property tax notice and can be made at most financial institutions in Canada (in person, by telephone or internet banking), by mail, or at City Hall. Mail early to avoid penalty. Post-dated cheques are accepted.
Provincial Legislation requires that any current property taxes that remain outstanding after the due date will be charged a penalty. To avoid this penalty, taxpayers must ensure that any balance remaining on their property tax account (after prepayment installments and home owner grant have been applied), is paid in full by the property tax due date.
If you want to change or cancel PAWS and/or if you sell your property, you can:
- Complete the PAWS Revision Form and submit to the Revenue Branch
- Email firstname.lastname@example.org
- Fax 250-862-3391
- Drop off or mail to City Hall
If you are cancelling your participation in PAWS, please advise the Revenue Branch in writing by the last business day of the month prior to the instalment dates for the regular withdrawal to be cancelled before the next payment date.
Prepayments received up until the cancellation date will remain attached to the property tax account.
When selling your property your notary must determine the amount of money prepaid to your property tax account and should credit you accordingly in the sales document (Statement of Adjustments).
If you have sold your property you MUST cancel your PAWS payment by notifying the Revenue Branch (either in writing or by emailing us at email@example.com) on or before the last day business day of the month prior to stop the withdrawal on the tenth. The sale of the property does not automatically stop the PAWS payment.