On October 23, 2007, the City of Toronto (416 telephone area code being bounded by Steeles on the North, Western boundary of Etobicoke, Eastern boundary of Scarborough and Lake Ontario’s shoreline on the South) approved a municipal Land Transfer Tax that will be levied in addition to the current Ontario Provincial Land Transfer Tax to be effective for closings on and after February 1, 2008.

The Toronto City Land Transfer Tax is as follows:

0.5% of the amount of the purchase price up to $55,000.00

1.0% of the purchase price between $55,000.00 and $400,000.00

2.0% of the purchase price above $400,000.00 (for residential properties)

The formula (for Toronto Residential Real Estate) for City of Toronto Land Transfer Tax will be as follows:

- up to $55,000: multiply price x 0.5%
- from $55,001 to $400,000: multiply price x 1.0% and deduct $275
- for a price over $400,000: multiply price x 2.0% and deduct $4275.00

(NOTE: if the Toronto Residential Real Estate purchased has more than two Residential Real Estate units, or is a commercial Real Estate property in Toronto and the price exceeds $400,000, multiply the total price x 1.5% and deduct $2,275.00)


ONTARIO GOVERNMENT LAND TRANSFER TAX COSTS

On transfers of Toronto Residential Real Estate property in Ontario, Ontario Land Transfer Tax (LTT) is calculated on the purchase price (less a calculation regarding GST, if the property purchased is a newly built home). The Ontario Land Transfer Tax is payable by the Buyer on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:

0.5% on the first $55,000 of the purchase price, plus

1.0% on the amount exceeding $ 55,000 up to and including $250,000, plus

1.5% on the amount exceeding $250,000 up to and including $400,000, plus

2.0% on the amount over $400,000.(Be aware that for non-residential properties, such as industrial or commercial real estate, there is no 2% charge since the tax rate is 1.5% for any amount of purchase price over $250,000 regardless of the total price.)

Example:
The Ontario Land Transfer Tax on a Toronto Canda Real Estate property transferred for $200,000 is calculated as $275.00 on the first $ 55,000 (0.5% = $ 275.00), plus $1,450.00 on the next $145,000 (1.0% = $1,450.00), for a total of $1,725.00.