LAND TRANSFER TAX: CITY OF TORONTO
(Revised April 16, 2018)
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.
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 $250,000: multiply price x 1.0%
– from $250,001 to $400,000: multiply price x 1.5%
– from $400,001 to $2,000,000: multiply price x 2.0%
– for a price over $2,000,000: multiply price x 2.5%
(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%.)
Calculate your Toronto City Land Transfer Tax (based on a purchase of a resale residential home):
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 buyer’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. For calculations of such tax, go to the link: Land Transfer Tax: Ontario . ALSO for purchase agreements accepted after April 20, 2017, if any buyer is a FOREIGN NATIONAL (not a Canadian Citizen or Permanent Resident) buying in or around Toronto, an added 15% Ontario tax might be payable based on the purchase price. Go to the link: Land Transfer Tax: Ontario .