Russell & Ward

The City of Toronto's Municipal Land Transfer Tax (MLTT) came into effect on February 1st, 2008. This tax is in addition to the provincial land transfer tax that already applies to all properties in Ontario.

For residential properties, the new tax is 0.5% on the first $55,000, plus 1% on the amount from $55,001 to $400,000 and an additional 2% on any amount in excess of $400,000.

Therefore, a purchase of $500,000 amounts to $5,725 in Toronto Land Transfer Tax*, $6,475 in Ontario Land Transfer Tax, for a total of $12,200.

*First-time purchasers of new and existing residential properties with a consideration value of $400,000 or less will receive a maximum rebate of $3,725. For more information: www.toronto.ca/taxes/mltt.htm