Toronto Land Transfer Tax

TORONTO LAND TRANSFER TAX

As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to all purchases of homes in the city of Toronto in addition to the Province's Land Transfer Tax. More information on taxation measures.

Teranet currently collects the 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.

Teranet will be communicating MLTT procedures directly through real estate lawyers.

Implementation
Rates and Calculation
Rebate Opportunities
Contact Information
Frequently Asked Questions

Municipal Land Transfer Tax Implementation

The Municipal Land Transfer Tax (MLTT) will be charged on properties purchased in Toronto and on disposition of all beneficial interests with closing dates on or after
February 1, 2008.

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.

Transition Rules: If your Purchase & Sale Agreement is executed on or before December 31, 2007 you are eligible for a full rebate.

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:

Value of Consideration	MLTT Rate
Up to and including $55,000	0.5% plus
Over $55,000.00 to $400,000	1.0% plus
Over $400,000	2.0%

For all other property:

Value of Consideration	MLTT Rate
Up to and including $55,000	0.5% plus
Over $55,000.00 to $400,000	1.0% plus
Over $400,000.00 to $40,000,000	1.5% plus
Over $40,000,000	1.0%

EXAMPLE: Calculation of the MLTT for a home with a $500, 000 (excluding GST) value of consideration:

MLTT Rate	Calculation
0 to $55,000 at 0.5%	55,000 x 0.005 = $275.00
$55,000 to $400,000 at 1%	$400,000 - $55,000 x 0.01=$3,450.00
$400,000 to $500,000	$500,000 - $400,000 x 0.02=$2,000.00
Total MLTT= $5,725.00

Rebate Opportunities

You may be eligible for a rebate of the MLTT if the following criteria is met:

Grand-Fathering
The Agreement of Purchase & Sale was executed on or before December 31, 2007 and the closing date is on or after February 1, 2008. In this case you will be eligible for a full rebate.
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 starting in the Summer 2008.

Contacts

Customer Service Call Centre
416-338-4829
TTY: 416-392-0719
Monday to Friday, 8:30 a.m. to 4:30 p.m.

CALCULATE YOUR LAND TRANSFER TAX

Ontario Land Transfer Tax Calculator (residential)


Enter the purchase price ($):

Ontario Land Transfer Tax ($):
NOTE: First Time Home Buyers receive up to $2,000.00 refund off their Ontario Land Transfer Tax! _______________________________________________________ Toronto Land Transfer Tax Calculator (In effect February 1, 2008)
**For parties with a purchase / sale agreement signed after December 31, 2007 with a closing on or after February 1, 2008 will be subject to the Ontario & the new Toronto Land Transfer Tax

Enter the purchase price ($):		New Home Buyer

Toronto Land Transfer Tax ($):

CALCULATE YOUR CLOSING COSTS

CLOSING COST QUOTATION SYSTEM™

Parnes Rothman is pleased to provide its clients and local community with its FREE Closing Cost Quotation System™ for Residential Real Estate transactions. We have made every effort to provide the most accurate quote possible based on the information you provide. Our Closing Cost Quotation System™ is unique in that it calculates all hidden expenditures, fees, disbursements and taxes that you will likely encounter for your transaction.

Follow the directions and provide as much detail as possible. Your FREE online legal quote will be generated instantly and your Closing Cost Quotation Certificate will be emailed to you which will include ALL legal fees, Real Estate commission, Title Insurance, Land Transfer Tax (including Toronto Land Transfer Tax), GST, Registration Fees and more!

GET YOUR FREE QUOTE TODAY!