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The Unfair Tax? – Toronto Land Transfer Tax

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As you all know the City of Toronto approved a Municipal Land Transfer Tax and (LTT) was effective February 1, 2008. It is applied in addition to the Province’s Land Transfer Tax.

The follow chart is how the LTT is calculated.

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%

The rebate for first time purchasers is up to a maximum of $3,725.

The analysis of the Toronto Land Transfer Tax was conducted by respected economists from the C.D. Howe Institute and the University of Toronto. It determined that this tax is directly responsible for reducing sales in the City of Toronto by 16 per cent. You can click the link to read the report yourself.

Of course I think the tax is not doing the economy any good but I doubt it has reduce sales by 16 per cent.  I believe the sluggish economy is more to blame for the reduced sales.

However, please keep it in mind for the upcoming municipal election campaign, that the LTT should be eliminated.

Are you thinking of Buying or Selling a home and would like to discuss your options?
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or call me directly at (416) 305-8008.

Kirby Chan
Sales Representative
416-305-8008
Web : http://www.KirbyChan.com
Email : Info@KirbyChan.com

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Author: Kirby Chan

I am a Real Estate Sales Representative servicing the Greater Toronto Area.

One thought on “The Unfair Tax? – Toronto Land Transfer Tax

  1. I read an article about the ltt and the expectations of the revenue the ltt would bring into toronto is of course falling short. It’s unfortunate that the extra tax money home purchasers are paying isn’t even going to fully benefit the city. The LTT seems like a bad idea all around!!

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