Toronto Land Transfer Tax

About Toronto Land Transfer Tax

On October 23, 2007, Toronto City Council has approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax, which take effects on February 1, 2008.

This approves a second land transfer tax, on top of the current provincial land transfer tax, at the following rates:

2nd new Municipal Land Transfer Tax:

• 0.5% of the amount of the purchase price up to and including $55,000
• 1% of the amount of the purchase price between $55,000 and $400,000
• 2% of the amount of the purchase price above $400,000

Existing Provincial Land Transfer Tax:

• 0.5% of the amount of the purchase price up to and including $55,000
• 1,0% of the amount of the purchase price between $55,000 and $250,000
• 1.5% of the amount of the purchase price between $250,000 and $400,000
• 2.0% of the amount of the purchase price over $400,000

Where does the Toronto land transfer tax apply?

The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.

First-Time Purchaser Rebate Opportunity

You are a first-time purchaser of a newly constructed or re-sale residential property, it the following criteria is met.

The definition of a first-time purchaser is:

• The purchaser is at least 18 years of age.
• The purchaser must occupy the home as his/her principal residence no later than nine months after the date of the conveyance or disposition.
• The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
• If the purchaser has a spouse, the spouse cannot have owned a home, nor had any ownership interest in a home, anywhere in the world while he/she was the purchaser’s spouse. If this is not the case, no rebate is available to either spouse.

The rebate for first-time home purchasers is up to a maximum of $3,725.00. If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview software when he/she registers your transfer/deed.

More detail information about Toronto Land Transfer Tax can be read City of Toronto Official Website.