About Toronto Land Transfer Tax

On October 23, 2007, Toronto City Council has approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax, which take effects on February 1, 2008.

This approves a second land transfer tax, on top of the current provincial land transfer tax, at the following rates:

2nd new Municipal Land Transfer Tax:

• • 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

Existing Provincial Land Transfer Tax:

• • 0.5% of the amount of the purchase price up to and including $55,000
• • 1,0% of the amount of the purchase price between $55,000 and $250,000
• • 1.5% of the amount of the purchase price between $250,000 and $400,000
• • 2.0% of the amount of the purchase price over $400,000

Where does the Toronto land transfer tax apply?

The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.

Are first time home buyers affected by Toronto land transfer tax?

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). The City has not yet provided clarification on how rebates will be administered. If your clients have concerns, they should check with their lawyer. Once the City of Toronto provides clarification, more information will be provided.

More detail information about Toronto Land Transfer Tax can be read City of Toronto Official Website.

Here is our handy Land Transfer Tax Calculator