Municipal taxation in Ontario generally takes the form of real property taxation. Ontario municipalities do not impose sales taxes or income taxes. real property taxes are not imposed by the federal government. Municipalities levy and collect property taxes based on assessed values determined by the Municipal Property Assessment Corporation. Municipalities may also levy development charges against particular properties if such developments will increase the need for its services. in Ontario, education tax rates are set by the province and collected by the municipalities or school boards. Properties that are in unincorporated areas are also liable for a provincial land tax which is levied and collected by the province. the City of Toronto imposes a land transfer tax.