Toronto Land Transfer Tax
On October 22 2007, despite much opposition and lobbying from Toronto Real Estate Board and its many members, Toronto City Council approved a new land transfer tax. That tax took effect on February 1, 2008.
The new tax is in addition to the provincial land transfer tax, and is be calculated as follows:
- 0.5% of the purchase price of all types of properties up to $55,000
- 1.0% of the portion of the purchase price of all types of properties above $55,000, up to and including $400,000
- 2.0% of the portion of the purchase price of single family homes and duplexes exceeding $400,000
- 1.5% of the purchase price of commercial properties, including multi-residential units, above $400,000 up to $40,000,000
- 1.0% of the portion of the purchase price of commercial properties exceeding $40,000,000
First time buyers purchasing new and resale residences will receive a rebate of $3,725. That means a purchase up to and including $400,000 by the first time buyer will be tax-free. If you are eligible for a rebate of all or a portion of the Toronto Land Transfer Tax, your lawyer will be able to claim the rebate electronically when he registers your transfer.