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On
October 23, 2007, 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 $55,000.00 |
| 1.0% of the purchase price
between $55,000.00 and $400,000.00 |
| 2.0% of the purchase price
above $400,000.00 (for residential properties) |
| The
formula (for a home purchase) for City of Toronto Land Transfer
Tax will be as follows:
- up to $55,000: multiply
price x 0.5%
- from $55,001 to $400,000: multiply
price x 1.0% and deduct $275
- for a price over $400,000: multiply price x 2.0% and deduct $4275.00
(NOTE: if the property purchased has more than two residential units or is a commercial property and the price exceeds $400,000, multiply the total price x 1.5% and deduct $2,275.00)
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Calculate your Toronto City Land
Transfer Tax (based on a purchase of a resale residential home):
SPECIAL NOTES REGARDING TORONTO LAND TRANSFER TAX
- The Toronto City land transfer tax becomes
effective on February 1, 2008 and does not affect any City of Toronto
property purchase closed prior to February 1, 2008. A buyer will only
pay the standard Ontario government land transfer tax (see “LAND
TRANSFER TAX: ONTARIO”) for any Toronto property purchase
closed before February 1, 2008.
- Where the City of Toronto property purchase
agreement is signed ON OR BEFORE December 31, 2007, and the closing
is AFTER February 1, 2008, a purchaser will be entitled to a full rebate
of the Toronto City land transfer tax paid on closing.
- Where the City of Toronto property purchase
agreement is signed AFTER December 31, 2007, and the closing is AFTER
February 1, 2008 the full tax is payable.
- 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 REBATE up to a maximum amount of $3,725.00,
being the 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 rebate of the City of Toronto Land Transfer Tax. If the Toronto first time buyer’s purchase price is $400,000 (or less), NO Toronto land transfer tax need be paid if a full rebate is available.
- No Toronto Land Transfer Tax is payable if the total Toronto Land Transfer Tax is less than $72 (for example, if only a condo parking or locker is being bought with a purchase price of less than $14,400)
- IN ADDITION TO Toronto Land Transfer Tax (for property purchased in TORONTO), a buyer typically must ALSO pay the added Ontario Land Transfer Tax. For calculations of such tax, go to the link: Land Transfer Tax: Ontario
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