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Monday October the 14th, 2019 
Linda E. Sully
Broker, SRES

Johnston & Daniel, A Division of Royal LePage R.E.S. Ltd.
Brokerage

Land Transfer Tax Update - November 2016

Land Transfer Tax Update - November 2016 - from Cohen Barrister & Solicitors LLP

 
November 14, 2016 - Provincial Government announces changes to Ontario Land Transfer Tax Effective January 1, 2016
- First Time Buyer Rebate changes from maximum of $2,000 to $4,000. Means no LTT on first ~$368,000 of purchase
price for FTB
- Highest marginal rate rises from 2.0% to 2.5% on the amount of the purchase price above $2.0 Million
 
Ontario Land Transfer Tax Rates:
 
Rates
• Up to and including $55,000.00 = 0.5%
• Next $55,001.00 to $250,000.00 = 1.0%
• Next $250,001.00 to $400,000.00 = 1.5%
• Next $400,001.00 to $2,000,000.00 = 2.0%
• Amounts over $2,000,000.00 = 2.5%
• First Time Buyer - $0 on first ~$368,000
• Save up to $4,000
 
                     OLD               NEW              FTB
$ 350,000      $ 3,725           $ 3,725    
$ 375,000      $ 4,100           $ 4,100           $ 100
$ 400,000      $ 4,475           $ 4,475           $ 475
$ 500,000      $ 6,475           $ 6,475           $ 2,475
$ 800,000      $ 12,475         $12,475           $ 8,475
$ 2,000,000   $ 36,475         $36,475           $32,475
$ 2,500,000   $ 46,475         $48,975           $44,975
 
Toronto Municipal Land Transfer Tax:
History
• October 22, 2007, Toronto City Council approved the Municipal Land Transfer Tax.
• Effective as a February 1, 2008.
• Charged on a graduated rate based on the consideration value of the property.
• To be paid by the Purchaser on closing
 Rates
• Up to and including $55,000.00 = 0.5% plus
• $55,000.00 to $400,000.00 = 1.0% plus
• Over $400,000.00 = 2.0%
 
 
                    CURRENT          FTB
$ 350,000      $ 3,225               $ -
$ 375,000      $ 3,475               $ -
$ 400,000      $ 3,725               $ -
$ 500,000      $ 5,725               $ 2,000
$ 800,000      $ 11,725              $8,000
$ 2,000,000   $ 35,725              $32,000
$ 2,500,000   $ 45,725              $42,000
 
Geographic Areas Affected:
 
Applies to real estate transactions in Toronto only (416) areas such as the former cities of Toronto, York, North York, Etobicoke, and
Borough of East York.
- Applies to Residential and Commercial Estate transactions but at different rates.
- Differs from the Ontario Land Transfer Tax
Rates.
- In Addition to the Ontario Land Transfer Tax
 
Definition of a First Time Home Buyer:
 
Must be at least 18 years of age;
- Cannot have owned a home or any ownership
interest (including a beneficial interest) in a
home, anywhere in the world;
- The Spouse of the Buyer cannot have owned
a home or had any ownership interest in a
home, anywhere in the world, while he or she
was the Buyer’s spouse.
 
Exemptions/Rebates:
 
Statutory Exemptions: Crown, crown agencies,
hospitals, universities and colleges, etc.
- All conveyances exempt under the Ontario Land
Transfer Tax are exempt from the MLTT.
 
REBATES
• First Time Home Buyers – Eligible for a rebate to maximum
of $4,000 LTT and $3,725.00 MLTT based on a purchase
price of ~$400,000.00 on both new construction and resale
properties.
 
Automatic Rebates:
 
First Time Home Buyer Rebate:
 
- Rebate applied automatically at closing – more of
a reduction than a rebate
- Buyer must be a First Time Home Buyer; and
- The Buyer must occupy the home as his or her
principal residence within 9 months of closing the
purchase transaction
- Maximum reduction = $7,725
 
Combined LTT & MLTT Sample Calculations:
 
Purchase Price       LTT           MLTT       TOTAL      TOTAL       FTB
$ 350,000               $ 3,725      $ 3,225      $ 6,950     $ -
$ 375,000               $ 4,100      $ 3,475      $ 7,575     $ 100
$ 400,000               $ 4,475      $ 3,725      $ 8,200     $ 475
$ 500,000               $ 6,475      $ 5,725      $12,200    $ 4,475
$ 800,000               $ 12,475    $11,725      $24,200    $ 16,475
$ 2,000,000            $ 36,475    $35,725      $72,200    $ 64,475
$ 2,500,000            $ 48,975    $45,725      $94,700    $ 86,975
 
Published by Cohen Barrister & Solicitors
41 Wynford Drive
Toronto, Ontario
M3C 1K1
 
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Linda E. Sully
Broker, SRES

Johnston & Daniel, A Division of Royal LePage R.E.S. Ltd.
Brokerage

477 MT. PLEASANT ROAD , Toronto, Ontario M4S 2L9
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