« Environmental Liability in "As Is" Transactions | Blog Home | City of Toronto Proposes New Environmental Reporting and Disclosure Program »
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
« Environmental Liability in "As Is" Transactions | Blog Home | City of Toronto Proposes New Environmental Reporting and Disclosure Program »
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
Interesting and informative post …..The City's taxation measures are used to sustain and enhance essential programs and services that are vital for a prosperous Toronto. The land transfer tax payable is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land. Municipalities impose a yearly municipal property tax on land within the municipality. If you have questions about municipal property tax, you should contact the municipality in which the land is located. Thanks for sharing.
Posted by: Adirondack real estate | Apr 2, 2011 5:34:34 AM
Why is the land tax so excessive? I feel like someone should contact some real estate law. It's not fair to have to pay exorbitant amounts of tax.
Posted by: Gary Neal | Jun 21, 2011 10:44:49 AM
The comments to this entry are closed.