Toronto Land Transfer Tax

On Oct 22nd, 2007, the Toronto City Council approved a new tax whenever you buy land, a condominium, a single-family residence, or commercial or multi-unit properties in the City of Toronto.

This additional tax went into effect on Feb 1, 2008, and it’s notable –

For residential properties:

• .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

Commercial/Industrial and Multi-Residential properties will be taxed on a different scale.

For Commercial/Industrial properties, including multi-residential units:
• .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
• 1.5% of the amount of the purchase price between $400,000 and $40 million
• 1% of the amount of the purchase price above $40 million

For first time buyers:
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 for 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 shown above, and receive a rebate of $3,725. A first time home buyer of a home valued at $300,000 will not be required to pay the tax..

To further help you, I’ve asked the primary lending company I work with to guarantee you a locked-in mortgage rate for the next 90 days. Call me direct today at 416-762-8255 or Contact Us with your buying interests and parameters.

© Andrea Morrison, 2005-2007, Sales Representative, National Chairman’s Club Award Winner. All rights reserved.
Royal LePage Real Estate Services Ltd., Brokerage Bloor West Village Office | Phone 416-762-8255

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