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Important Changes to the City of Toronto Land Transfer Tax

Featuring: Heather Picken
Mar 6, 2017

The City of Toronto has changed its Municipal Land Transfer Tax (MLTT) rate structure and rebate eligibility criteria and structure, effective March 1, 2017.

MLTT is payable on the purchase of any property in the City of Toronto and is based on the consideration value of the transaction in question. As of March 1, 2017, MLTT rates for the City of Toronto have increased as follows:

  • from 1.0% to 1.5% of the consideration value for a residential or non-residential property above $250,000 up to and including $400,000
  • from 2.0% to 2.5% of the consideration value for a residential property above $2,000,000
  • from 1.5% to 2.0% of the consideration value for a non-residential property above $400,000

Also effective for all conveyances and dispositions made on or after March 1, 2017, the rebate for qualified first-time buyers has increased from a maximum of $3,725 to a maximum of $4,475, depending on the value of the purchase.

The City of Toronto has also amended the first-time homebuyer rebate program eligibility rules to make them consistent with the current Ontario Land Transfer Tax rules by restricting rebate eligibility to Canadian citizens or permanent residents of Canada. 

However, unlike the changes to the Ontario Land Transfer Tax rules, the City of Toronto is not allowing a transitional period for the new MLTT rates and rules to exempt transactions initiated before March 1, 2017.  

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