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Toronto's Land Transfer Tax
The new Toronto Land Transfer Tax comes into force on February 1, 2008 and will have a material impact on commercial conveyances.
Below is a table which shows the graduated rates of Ontario and Toronto Land Transfer Tax for commercial transactions (that is, ignoring the 2% LTT on the portion of the purchase price over $400,000 on residential transactions).
Land Transfer Tax in Toronto 2008
Portion of Purchase Price |
Existing Ontario Land Transfer Tax |
New Toronto Land Transfer Tax |
$1 - $55,000 |
.5% |
.5% |
$55,001- $400,000 |
1% to $250,000 1.5% to 400,000 |
1% |
$400,001 - $40,000,000 |
1.5% |
1.5% |
$40,000,001 - |
1.5% |
1% |
A $10 million purchase will attract Ontario Land Transfer Tax of $148,475 and Toronto Land Transfer Tax of $148,475, totaling $296,950. All conveyances up to $40 million in value, will similarly double the Land Transfer Tax payable. For conveyances over $40 million it is slightly less than doubling as Toronto Land Transfer Tax reduces to 1% of the purchase price over that amount.
If the transaction closes by January 31, 2008 the Toronto Land Transfer Tax will not apply. In addition, if a real estate closing takes place on or after February 1, 2008 and the Agreement of Purchase and Sale was executed on or before December 31, 2007 the Purchaser is also entitled to a full rebate.
January 22, 2008 in Purchases and Sales | Permalink
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Comments
You know, land transfer tax is changing in our part of the world too (Hungary) too. The difference is that our gov't imposes higher taxes. Property business seems to be attractive target to law-makers with the obvious aim to get as much money out of it as possible...
Posted by: Hun Property | Jan 22, 2008 2:29:34 PM
Hi Bruce, I am working as a Toronto realtor, but now I am not sure, is it still possible to receive a rebate of the LTT? I mean if it is possible to receive rabete when you are first-time home buyer? If I am right the maximum LTT rebate is $2,000. Thanks.
Posted by: Toronto realtor | Jan 23, 2008 3:56:08 PM