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On October 22, 2007, Toronto City Council approved a new land transfer tax which takes effect on February 1, 2008.
All purchasers pay:
- one-half of one percent of the value of the consideration on sales up to and including $55,000.
- one per cent of the value of the consideration on sales exceeding $55,000 up to and including $400,000.
- two per cent of the value of the consideration of land containing one and/or two single family residences exceeding $400,000.
- one and a half per cent of the value of the consideration on commercial properties including multi-residential units exceeding $400,000 up to $40 million.
- one per cent of the value of the consideration which exceeds $40 million. Where the net revenue after transaction fees would result in revenue to the City of less than $2.00, the purchase would be exempt from the Toronto Land Transfer Tax.
Who Pays the Land Transfer Tax?
- If you have purchased a property with a closing date on or after February 1, 2008 you will be required to pay the Toronto Land Transfer Tax.
- If the closing date is on or after February 1, 2008 and the Purchase & Sale agreement was executed on or before December 31, 2007 you are eligible for a full rebate.
For first-time purchasers:
A rebate of up to $3,725 will apply to first-time purchasers of both new and existing homes. This means a full rebate for first-time buyers of homes valued at $400,000 or less. For example, a first-time purchaser of a home valued at $600,000 would pay land transfer tax according to the scale noted above, and receive a rebate of $3,725. A first time home buyer of a home valued at $300,000 would get a full rebate on the land transfer tax.
Provincial Land Transfer Tax
For further information on the Provincial Land Transfer Tax please refer to the provincial website.
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