The City of Toronto (416 telephone area code being bounded by Steeles on the North, Western boundary of Etobicoke, Eastern boundary of Scarborough and Lake Ontario’s shoreline on the South) approved a municipal Land Transfer Tax that will be levied in addition to the current Ontario provincial Land Transfer Tax to be effective for closings on and after February 1, 2008.
The Toronto City Land Transfer Tax is as follows:
0.5% of the amount of the purchase price up to $55,000.01
1.0% of the purchase price between $55,000.00 and $250,000.00
1.5% of the purchase price between $250,000.01 and $400,000.00
2.0% of the purchase price between $400,000.01 and $2,000,000.00
2.5% of the purchase price above $2,000,000.00 (for residential properties under 3 units)
NOTE: Effective April 1, 2016, an additional administration fee of $75.00 + HST will be charged for processing each purchase in the City of Toronto.
SPECIAL NOTES REGARDING TORONTO LAND TRANSFER TAX
- If the buyer of property in the City of Toronto is a qualified first time buyer (and this applies to both builder and resale deals) then such buyer is entitled to a DEDUCTION of up to a maximum amount of $4,475.00, being the Toronto Land Transfer tax on the value of a home in the amount of $400,000.00. In other words, a first time buyer buying a home for $400,000.00 (or less) is entitled to a full deduction of the City of Toronto Land Transfer Tax. If the Toronto first time buyerâ€™s purchase price is $400,000 (or less), NO Toronto land transfer tax need be paid if a full rebate/deduction is available.
- For all purchases closing after March 1, 2017, in order to receive a First Time Buyer deduction (up to $4,475.00) the purchaser must be a Canadian citizen or a permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the closing, one may apply for a refund provided an application for a refund is submitted within 18 months of the closing date.
- IN ADDITION TO Toronto Land Transfer Tax (for property purchased in TORONTO), a buyer must ALSO pay the added Ontario Land Transfer Tax. To Calculate the land transfer tax in the city of Toronto use the land transfer tax calculator on the right side of this page.