City of Toronto Land Transfer Tax

The City of Toronto charges a Toronto Land Transfer Tax in addition to the Government of Ontario’s Provincial Land Transfer Tax on property deals closing on or after February 1, 2008. The Toronto Land Transfer Tax applies to the 416 telephone area code being bound by Steeles on the north, the western boundary of Etobicoke, the eastern boundary of Scarborough and Lake Ontario’s shoreline on the south.

The Toronto Land Transfer Tax is calculated as follows:
  • For residential property with a single residence or not more than two residential units-

    »   0.5% 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

  • In effect, for a purchase price:

    »   up to $55,000: multiply the purchase price x 0.5%
    »   from $55,001 to $400,000: multiply the purchase price x 1.0% and deduct $275
    »   over $400,000: multiply the purchase price x 2.0% and deduct $4275.00

  • For a residential property with more than two residential units or for commercial property, where the price exceeds $400,000, multiply total price x 1.5% and deduct $2,275.00.
Are You Eligible for a Rebate?

You are eligible for a full rebate of the Toronto Land Transfer Tax:

  • If your Agreement of Purchase and Sale was signed on or before December 31, 2007 and the closing is after February 1, 2008. You only pay the Ontario Land Transfer Tax in this case.
  • NOTE: If you signed the Agreement of Purchase and Sale after December 31, 2007 and the closing is after February 1, 2008, the full Toronto Land Transfer Tax amount is payable.
  • First-Time Home Buyers of New and Resale homes- If the cost of your property is $400,000 you are entitled to a full tax rebate of the Toronto Land Transfer Tax in the maximum amount of $3, 725.00. However, if the cost of your property exceeds $400,000 then you are eligible only for a partial rebate. In this case you are required to pay the full amount of the Toronto Land Transfer Tax at the time of the closing and apply for a partial rebate after the closing. The same rule applies if only one out of the two buyers qualifies as a first-time home buyer.
No Tax Required:
  • If the total value of the Toronto Land Transfer Tax is less than $72.

For further information visit the City of Toronto website at www1.toronto.ca
or contact Nanda & Associate Lawyers at 905-405-0199 or email us at info@nanda.ca

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