Land Transfer Tax- City of Toronto

Land Transfer Tax- City of Toronto

Municipal Land Transfer Tax is charged on all properties purchased in the City of Toronto after February 1, 2008. All unregistered dispositions with a beneficial interest in land are also subject to this tax.

The City of Toronto includes the area bounded by Steeles on the North, Lake Ontario’s shoreline on the South, Western boundary of Etobicoke and Eastern boundary formed by Scarborough.
The Land Transfer Tax becomes payable at the time of registration of your property as per the Provincial Land Transfer Act. The Municipal Land Transfer tax is payable in addition to the Land Transfer Tax payable for the province of Ontario.

What Are the Municipal Land Transfer Tax Rates for Toronto?

After March 1, 2017, tax rates are as follows for properties with at least one and a maximum of two single family residences:

• 0.5% for value of consideration up to and including $55,000
• 1.0% for value of consideration from $55,000 up to and including $250,000
• 1.5% for value of consideration from $250,000 up to and including $400,000
• 2.0% for value of consideration from $400,000 up to and including $2,000,000
• 2.5% for value of consideration above $2,000,000

Tax rates for non-single, family residences apart from the above are as below:

• 0.5% for value of consideration up to and including $55,000
• 1.0% for value of consideration from $55,000 up to and including $250,000
• 1.5% for value of consideration from $250,000 up to and including $400,000
• 2.0% for value of consideration above $400,000

Are Any Deductions Allowed In Payment Of Municipal Land Transfer Tax Of Toronto For First-Time Homebuyers?

All first-time property buyers in the City of Toronto are entitled to a full deduction of Municipal Land Transfer Tax of Toronto. The specified deductions are applicable, both on new builder and resale properties.

No tax is payable if the purchase price of the property is up to and including $400,000. The maximum amount of the deduction is $4475.

Do Foreign Nationals Need to Pay any additional tax on Property Purchase Transactions in Toronto?

Foreign National Tax will be applicable for foreign national buyers of properties in Ontario for all purchase agreements after April 20, 2017. A buyer is deemed to be a foreign national when they are not a Canadian Citizen or a Permanent Resident. Click here to know more.

Is The Ontario Land Transfer Tax Payable If The Municipal Land Transfer Tax Of Toronto Is Paid?

Yes. The Ontario Land Transfer Tax is payable to the province for purchase of property. This is payable in addition to the Municipal Land Transfer Tax of Toronto paid to the City of Toronto. Click here to know more.