Information on Land Transfer Tax
Ontario Land Transfer Tax Calculator
Toronto Residents click below to view and compare both
Toronto Land Transfer Tax Calculator
Please Use the Toronto Land Transfer Tax Calculator
to see the 2 Taxes Compared "Side by Side" above.
The combined dollar amount will be required as part of your new closing costs.
Contact your Realtor for assistance in preparing a New Buyers Closing Cost
Prep Sheet. If you don't have a saleperson contact us for assistance
> Toronto Land Transfer Breaks for First Time Buyers <
Includes Forms to obtain Rebates
click here
> Ontario Land Transfer Breaks for First Time Buyers <
First time purchasers may be entitled to a refund of Ontario’s land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration. If not, the refund may be claimed directly from the Ministry of Revenue.
Click here for info and forms
Details of New Toronto Land Transfer Tax
Toronto City Council approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax. As a direct result of this strong position, City Council was forced to make a number of amendments to the City’s original proposal, including rebates for first-time buyers, a reduced rate, and grandfathering for existing transactions.
The Municipal Land Transfer Tax (MLTT) will be charged on properties purchased in Toronto and on disposition of all beneficial interests with closing dates starting February 1, 2008.
What was approved by City Council?
A second land transfer tax, on top of the provincial land transfer tax, at the following rates:
Residential:
- 0.5% of the amount of the purchase price up to and including $55,000
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1% of the amount of the purchase price between $55,000 and $400,000
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2% of the amount of the purchase price above $400,000
Commercial / Industrial / Etc.:
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0.5% of the amount of the purchase price up to and including $55,000
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1% of the amount of the purchase price between $55,000 and $400,000
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1.5% of the amount between $400,000 and $40 million
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1% of the amount above $40 million
Residents outside of the Toronto area these figures are not applicable to you, see the Provincial Land Transfer Tax, click our calculator above to arrive at that single figure.
When does this take effect?
February 1, 2008.
Are existing transactions grandfathered?
Yes. Any transactions where the purchaser and vendor have entered into an Agreement of Purchase and Sale for the property prior to December 31, 2007 will be rebated the full amount of the Toronto land transfer tax, regardless of the closing date. (Note: Media reports that closings must occur by Feb. 1, 2008 are inaccurate.) The City has not yet provided clarification on how rebates will be administered. If your clients have concerns, they should check with their lawyer. Once the City of Toronto provides clarification, more information will be provided.
Are first time home buyers affected?
First time home buyers of new AND re-sale homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000).
If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338. Some information from the City is available here.
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