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As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province's Land Transfer Tax. More information on taxation measures. Teranet currently collects the Land Transfer Tax on behalf of the Province of Ontario. The City of Toronto designated Teranet to collect the Municipal Land Transfer Tax when your property transaction is registered by your real estate lawyer.
Teranet will be communicating MLTT procedures directly through real estate lawyers.
Municipal Land Transfer Tax Implementation
The Municipal Land Transfer Tax (MLTT) will be charged on properties purchased in Toronto and on disposition of all beneficial interests with closing dates on or after
February 1, 2008.
Following the provincial government's Land Transfer Act and property transaction requirements, your lawyer will register your property transaction and at that time your MLTT will be collected. For more information on the collection of your MLTT, please contact your real estate lawyer.
Transition Rules: If your Purchase & Sale Agreement is executed on or before December 31, 2007 you are eligible for a full rebate.
Municipal Land Transfer Tax Rates
The MLTT will be charged on a graduated basis depending on the value of consideration paid for the property.
For property containing at least one, and not more than two, single family residences with a consideration value of:
| 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% |
For all other property with a consideration value: | 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 | | $400,000.01 to $40,000,000.00 | 1.5% plus | | Over $40,000,000.00 | 1.0% |
FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):
| MLTT Rate | Calculation | | 0 to $55,000.00 | 55,000.00 x 0.005 = $275.00 | | $55,000.01 to $400,000.00 | $344,999.99 x 0.01=$3,450.00 | | $400,000.01 to $500,000.00 | $99,999.99 x 0.02=$2,000.00 | | Total MLTT= $5,725.00 |
Rebate Opportunities
You may be eligible for a rebate of the MLTT if either of the following criteria is met: - Grand-Fathering
The Agreement of Purchase & Sale was executed on or before December 31, 2007 and the closing date is on or after February 1, 2008. In this case you will be eligible for a full rebate.
- First-Time Purchaser
You are a first-time purchaser of a newly constructed or re-sale residential property with two or less single-family residences. The rebate for first-time purchasers is up to a maximum of $3,725.00.
If you are eligible for a rebate of the entire amount of MLTT you owe, you will receive an automatic rebate when your lawyer registers your property transaction and will not have to pay the tax.
If you are eligible for a rebate for a only a portion of the MLTT, the full tax will be collected at the time your lawyer registers your property transaction. Once your lawyer submits your rebate application form and affidavit a cheque for the rebated amount will be sent to the purchaser.
All rebates will be automatically deducted from the MLTT owing at the time your property is registered starting in the Summer 2008.
Instructions and Forms for Lawyers
Contacts
Customer Service Call Centre
416-338-4829
TTY: 416-392-0719
Monday to Friday, 8:30 a.m. to 4:30 p.m.
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