Land Transfer Tax Toronto, ON

Whether you're buying your first home or investing in Toronto real estate, understanding land transfer tax in Toronto is essential. At Khan Law, we guide clients through both provincial and municipal taxes so your purchase goes smoothly.

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Toronto Land Transfer Tax

If you're buying property in Toronto, be prepared for the Municipal Land Transfer Tax, which applies to all real estate purchases within city limits made on or after February 1, 2008, regardless of property type or value. Buyers must pay the City of Toronto Land Transfer Tax at the time of registering the property.

This municipal tax applies to both registered and unregistered property transactions involving a beneficial interest in land. The area covered includes everything from Steeles Avenue in the north to the Lake Ontario shoreline in the south, stretching from Etobicoke’s western boundary to the edge of Scarborough in the east. Understanding how much land transfer tax Toronto you might owe can be tricky, especially since both municipal and provincial taxes apply.

Using a City of Toronto land transfer tax calculator or speaking with a real estate lawyer in Toronto at Khan Law can help you calculate transfer tax and make sense of your obligations. Need help understanding transfer tax laws for land in Toronto? Reach out for a free quote.

Land Transfer Tax In Toronto Rates

If you’re purchasing a home in Toronto, understanding the City of Toronto land transfer tax rates is essential. These rates apply on top of the Ontario Land Transfer Tax, and vary based on the type and value of the property.

For residential properties with one or two single-family units (effective March 1, 2017), the
following land transfer tax in Toronto rates apply:

0.5% on the first $55,000 of the purchase price
1.0% on amounts between $55,000 and $250,000
1.5% on amounts between $250,000 and $400,000
2.0% on amounts between $400,000 and $2,000,000
2.5% on amounts above $2,000,000

For all other property types, the land transfer tax Toronto rates are:

0.5% on the first $55,000
1.0% on amounts from $55,000 to $250,000
1.5% on amounts from $250,000 to $400,000
2.0% on anything above $400,000

Not sure how much land transfer tax in Toronto applies to your purchase? A land transfer tax Toronto calculator can offer quick estimates, or you can speak with a real estate lawyer at Khan Law for guidance tailored to your transaction.

First-Time Homebuyer Deduction for City of Toronto Land Transfer Tax

If you're a first-time homebuyer in Toronto, you may qualify for a full rebate on the Municipal Land Transfer Tax Toronto charges. This applies to both new builds and resale properties during the purchase and sale process. No land transfer tax in Toronto is owed if the purchase price is $400,000 or less. The maximum allowable rebate is $4,475. If the price exceeds $400,000, a partial refund may still be available, depending on your eligibility.

Do Foreign Buyers Pay Additional Taxes in Toronto?

Yes, foreign nationals are subject to an extra tax on property purchases in Ontario. This Foreign Buyer Tax applies to agreements signed on or after April 20, 2017. A person is considered a foreign national if they are not a Canadian citizen or permanent resident at the time of purchase. This is separate from the City of Toronto land transfer tax and should be factored into the total cost when purchasing property as a non-resident.

Do I Still Pay the Ontario Land Transfer Tax?

Yes. Even if you’ve paid the land transfer tax in Toronto, the Ontario Land Transfer Tax is still due. Buyers must pay both municipal and provincial portions at the time of registration. To better understand how much transfer tax for land in Toronto applies to your deal, consult with our team or use a City of Toronto land transfer tax calculator.

How Khan Law Can Support You

Buying property in Toronto comes with important tax considerations. At Khan Law, we take the time to understand your needs and guide you through every step, from calculating the Toronto land transfer tax to finalizing your purchase with clarity and confidence. Reach out today. We're here to make your real estate journey smoother, with experience you can trust and support you can count on.

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