CITY OF TORONTO LAND TRANSFER TAX
As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a Toronto Municipal Land Transfer Tax effective February 1, 2008. The Toronto land transfer tax is applied to purchases on all properties in the city of Toronto, in addition to the provincial Ontario Land Transfer Tax.
Teranet currently collects the Ontario Land Transfer Tax on behalf of the Province of Ontario. The City of Toronto designated Teranet to collect the Municipal Land Transfer Tax when your property transaction is registered by your real estate lawyer.
Toronto Municipal Land Transfer Tax Implementation
The Toronto Municipal Land Transfer Tax (MLTT) is charged on properties purchased in Toronto and on disposition of all beneficial interests.
Following the provincial government's Land Transfer Act and property transaction requirements, your lawyer will register your property transaction and at that time your MLTT will be collected. For more information on the collection of your MLTT, please contact your real estate lawyer.
Toronto Municipal Land Transfer Tax Rates
The MLTT will be charged on a graduated basis depending on the value of consideration paid for the property.
For property containing at least one, and not more than two, single family residences with a consideration value of:
| Value of Consideration |
MLTT Rate |
| Up to and including $55,000.00 |
0.5% plus |
| $55,000.01 to $400,000.00 |
1.0% plus |
| Over $400,000.00 |
2.0% |
For all other property with a consideration value:
| Value of Consideration |
MLTT Rate |
| Up to and including $55,000.00 |
0.5% plus |
| $55,000.01 to $400,000.00 |
1.0% plus |
| $400,000.01 to $40,000,000.00 |
1.5% plus |
| Over $40,000,000.00 |
1.0% |
FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding HST):
| MLTT Rate |
Calculation |
| 0 to $55,000.00 |
55,000.00 x 0.005 = $275.00 |
| $55,000.01 to $400,000.00 |
$344,999.99 x 0.01=$3,450.00 |
| $400,000.01 to $500,000.00 |
$99,999.99 x 0.02=$2,000.00 |
| Total MLTT= $5,725.00 |
Toronto Land Transfer Tax Rebate
You may be eligible for a rebate of the MLTT if you are a first-time purchaser.
First-Time Purchaser
You are a first-time purchaser of a newly constructed or re-sale residential property with two or less single-family residences. The rebate for first-time purchasers is up to a maximum of $3,725.00.
If you are eligible for a rebate of the entire amount of MLTT you owe, you will receive an automatic rebate when your lawyer registers your property transaction and will not have to pay the tax.
If you are eligible for a rebate for a only a portion of the MLTT, the full tax will be collected at the time your lawyer registers your property transaction. Once your lawyer submits your rebate application form and affidavit, a cheque for the rebated amount will be sent to the purchaser.
All rebates will be automatically deducted from the MLTT owing at the time your property is registered.
How can I get more Toronto Land Transfer Tax information?
If you have further questions, contact the City of Toronto at Access Toronto at 416-338-0338.
If you have any questions or concerns about how the City of Toronto land transfer tax may affect your home buying or selling plans, please call me at (416) 849-7561 or e-mail me at: jcahill@trebnet.com.
Important Note on Ontario Land Transfer Tax
Buyers in Ontario are also subject to Ontario Land Transfer Tax on the purchase of property. You can read about that here.
Ontario and Toronto Land Transfer Tax Calculator
The land transfer tax calculator on my site has been updated to reflect the rules regarding Toronto Land Transfer Tax and rebates of Ontario Land Transfer Tax for first-time home buyers. Click here.
