Saving for your New Home? Don't forget to take advantage of the RSP Program and the New $5,000 Savings Account - Earn extra interest Tax Free. If you are a First Time Buyer ensure you review every possible Government Program that will assist you in saving money.  You have one chance at being a First Time Buyer so take advantage.

Details of 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?

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
  • 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

Commercial / Industrial / Etc.:

  • 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
  • 1.5% of the amount between $400,000 and $40 million
  • 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.) So if you purchased a new condo/home in 2007 with a 2008 / 09 closing date you shouldn't be affected.  Confirm with their lawyer upfront, with new construction not everyone reads the fine print.  Other closing costs may arise such as interim occupancy, park tax, adjustments can add up, review the closing costs with your lawyer to ensure you have budgeted accordingly and don't have any surprises. 

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.