New 2017 Ontario and Toronto Municipal Land Transfer Tax Rates
The new City of Toronto Land Transfer Tax Rates which are effective March 1, 2017 are as illustrated below. The City has decided to harmonize their rates with the recently announced Ontario, Provincial Land Transfer Tax changes. The difference between the City and the Ontario Provincial rules is that the City’s changes do not include grand-parenting provisions to exempt transactions that are initiated prior to March 1, 2017.
In addition to the changes in the Toronto Land Transfer Taxes, also effective for all conveyances and dispositions made on or after March 1, 2017, the maximum rebate for eligible first time purchasers will increase from $3,725.00 to $4,475.00 (i.e. first $400,000.00 consideration is not subject to the tax). The City has also amended the eligibility of the first time home buyer rebate to Canadian citizens or permanent residents of Canada (to be consistent with the provincial rules).
RESIDENTIAL
Ontario Provincial Land Transfer Tax, Maximum First Time Home Buyer Rebate Amount: $4,000.00
| CONSIDERATION | FORMULA |
| Up to $55,000.00 | x .005 |
| $55,000.01 to $250,000.00 | x .01 – $275.00 |
| $250,000.01 to $400,000.00 | x. 015 – $1,525.00 |
| $400,000.01 to $2,000,000.00 | x .02 – $3,525.00 |
| $2,000,000.01 and up | x .025 – $13,525.00 |
Toronto Municipal Land Transfer Tax, Maximum First Time Home Buyer Rebate Amount: $4,475.00
| CONSIDERATION | FORMULA |
| Up to $55,000.00 | x .005 |
| $55,000.01 to $250,000.00 | x .01 – $275.00 |
| $250,000.01 to $400,000.00 | x .015 – $1,525.00 |
| $400,000.01 to $2,000,000.00 | x .02 – $3,525.00 |
| $2,000,000.01 and up | x .025 – $13,525.00 |
Note: For new residential construction HST is to be backed out of the purchase price prior to the calculation of Land Transfer Tax.
COMMERCIAL
Ontario Provincial Land Transfer Tax
| CONSIDERATION | FORMULA |
| Up to $55,000.00 | x .005 |
| $55,000.01 to $250,000.00 | x .01 – $275.00 |
| $250,000.01 to $400,000.00 | x .015 – $1,525.00 |
| $400,000.01 and up | x .02 – $3,525.00 |
Toronto Municipal Land Transfer Tax
| CONSIDERATION | FORMULA |
| Up to $55,000.00 | x .005 |
| $55,000.01 to $250,000.00 | x .01 – $275.00 |
| $250,000.01 to $400,000.00 | x.015 – $1,525.00 |
| $400,000.01 and up | x .02 – $3,525.00 |
Read More: Real Estate: Buying an Investment Condo Pre-Build and the GST/HST Rebate
