Toronto Land Transfer Tax and Rebate

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 purchases on all properties 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.
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 with a consideration value of:

Value of Consideration MLTT Rate
Up to and including $55,000.00 0.5%  plus
$55,000.01 to $400,000.00 1.0%  plus
Over $400,000.00 2.0%



For all other property with a consideration value:
Value of Consideration MLTT Rate
Up to and including $55,000.00 0.5%  plus
$55,000.01 to $400,000.00 1.0%  plus
$400,000.01 to $40,000,000.00 1.5%  plus
Over $40,000,000.00 1.0%


FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):

MLTT Rate Calculation
0 to $55,000.00 55,000.00 x 0.005 = $275.00
$55,000.01 to $400,000.00 $344,999.99 x 0.01= $3,450.00
$400,000.01 to $500,000.00 $99,999.99 x 0.02= $2,000.00
Total MLTT= $5,725.00



Rebate Opportunities

You may be eligible for a rebate of the MLTT if either of the following criteria is met:
  1. 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.

  2. First-Time Purchaser
    You are a first-time purchaser of a newly constructed or re-sale residential property. The rebate for first-time home purchasers is up to a maximum of $3,725.00.

If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview version 6.0 software when he/she registers your transfer/deed.


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

 
Rajan Prashar

Rajan Prashar

Sales Representative
CENTURY 21 Green Realty Inc., Brokerage*
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