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New Toronto Land Transfer Tax On-line Calculator -  use this calculator below to calculate your total land transfer tax when buying in Toronto

Maybe it's time to move to Mississauga as New Toronto Land Transfer Tax takes effect Maybe it's time to move to Mississauga and the west end of the GTA!

Most recent information

Highlights of the new Tax:

For example, if the average price of a home in Toronto is about $400,000 the new tax in Toronto will add about 3725 to the purchase price.  This means if you purchase the same home in Mississauga you will save $3725!  Use the calculator below to see how much tax has been added to your real estate purchase in Toronto.

 

Calculate Land Transfer Tax payable if you are purchasing a residential property in the City of Toronto

Enter the purchase price: $ 
(no commas or decimals)

Provincial Land Transfer Tax
Amount $    
Toronto Land Transfer
Tax Amount $ 
  
Total Land Transfer Tax payable when buying a property in the City of Toronto
Amount $    

This calculator shows 3 figures.
  • The first figure is the amount of Provincial Land Transfer tax payable when you purchase property anywhere in Ontario and is payable to the Ontario Government. 
  • The second figure is the amount of Toronto Land Transfer tax payable when you purchase property anywhere within the City of Toronto and is payable to the City of Toronto. 
  • Thus, your total land transfer tax payable for the purchase of a property within the city of Toronto is the third figure, the sum of the two taxes payable.

These are some articles on the subject, note the fever!

New Information Regarding the Toronto Land Transfer Tax Rebates Provided By City of Toronto

The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect. Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below. DetailsAccording to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:

More Information Complete details of the Toronto land transfer tax are available by calling the City of Toronto at 416-338-0338.

Read More about Toronto Land Transfer Tax or at my site

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Details of Approved Toronto Land Transfer Tax

October 23, 2007 -- Toronto City Council has approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax. TREB worked very hard to oppose this tax and commends the efforts of REALTORS® on this issue. TREB took a strong position to oppose this tax as unfair in principle and refused to compromise. As a direct result of this strong position, City Council was forced to make a number of amendments to the City’s original proposal, including rebates for first-time buyers, a reduced rate, and grandfathering for existing transactions.

The following is based on currently available information. Some information from the City is available here.

What was approved by City Council?

A second land transfer tax, on top of the provincial land transfer tax, at the following rates:

Residential: (An easy-to-use residential calculator is available here):

  • 0.5% of the amount of the purchase price up to and including $55,000, plus
  • 1% of the amount of the purchase price between $55,000 and $400,000, plus
  • 2% of the amount of the purchase price above $400,000

Commercial / Industrial / Etc.:

  • 0.5% of the amount of the purchase price up to and including $55,000, plus
  • 1% of the amount of the purchase price between $55,000 and $400,000, plus
  • 1.5% of the amount between $400,000 and $40 million, plus
  • 1% of the amount above $40 million

When does this take effect?

February 1, 2008.

Are existing transactions grandfathered?

Yes. Any transactions where the purchaser and vendor have entered into an Agreement of Purchase and Sale for the property on or before December 31, 2007, and closing after the TLTT takes effect on February 1, 2008, will be REBATED the full amount of the Toronto land transfer tax, regardless of how long after February 1, 2008 the closing date is. (Note: Media reports that closings must occur by Feb. 1, 2008 are inaccurate.) Agreements closing before February 1, 2008 do not pay the tax. Teranet will be collecting the Toronto land transfer tax for the City of Toronto. Once the City’s rebate policies are reflected in Teranet’s collection system, the rebate-eligible amount will be exempt at the time of registration. The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect. According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This means that purchasers involved in grandfathered transactions (Agreements of Purchase and Sale signed on or before December 31, 2007, closing on or after February 1, 2008) will not have to pay the Toronto land transfer tax. If your clients have concerns, they should check with their lawyer.

What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates before February 1, 2008?

Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing before February 1, 2008 will not be required to pay the Toronto Land Transfer tax.

What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates on or after February 1, 2008?

Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing on or after February 1, 2008 will be required to pay the full Toronto Land Transfer tax.

Where does this apply?

The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.

Are first time home buyers affected?

First time home buyers of new AND re-sale homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000). Teranet will be collecting the Toronto land transfer tax for the City of Toronto. Once the City’s rebate policies are reflected in Teranet’s collection system, the rebate-eligible amount will be exempt at the time of registration. The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect. According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This means that first-time home buyers where the total Toronto land transfer tax is $3,725 (the Toronto land transfer tax payable on a home purchased for $400,000) or less, will not pay Toronto land transfer tax (see exception noted below). If your clients have concerns, they should check with their lawyer.

Note: First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet’s collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.

Who qualifies as a first-time home buyer?

According to the City of Toronto, eligibility rules for the Toronto Land Transfer Tax first-time buyer rebate will mirror provincial rules, as follows:

  • The purchaser must be at least 18 years of age.
  • The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
  • The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
  • If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse. If this is the case, NO refund is available to either spouse. Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.

Are Toronto Land Transfer Tax Rebates in addition to Provincial Land Transfer Tax Rebates?

Yes. The provincial government also provides a rebate of the provincial land transfer tax for first-time buyers. See details of provincial land transfer tax rebate.

How can I get more information?

More detailed information will be provided once it is made available by the City. If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338. Some information from the City is available here.

If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338.

 

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TREB REALTORS® Disappointed that Public Opinion on Land Transfer Tax Ignored

TORONTO, ONTARIO--(Marketwire - Oct. 24, 2007) - Toronto's REALTORS® are concerned about the potential impact of the City of Toronto's recently approved second land transfer tax and disappointed that the public's opinion of this tax was ignored.

"REALTORS® have been working hard to provide the facts about this unfair idea and the public responded with action. An overwhelming majority of Torontonians believe that this tax is a bad idea," said Maureen O'Neill, President of the Toronto Real Estate Board (TREB). "The public made their voices heard loud and clear but, unfortunately, they were ignored."

A poll conducted by the Environics Research Group, commissioned in part by TREB, showed that 62 per cent of Torontonians think that a land transfer tax is an unfair solution to the City's financial challenge and that 61 per cent of Torontonians wanted their Councillor to vote against it.

"Torontonians deserve to be treated fairly. A second land transfer tax is an extremely unfair way to address the City's financial challenges. It forces a relatively small group, home buyers, to pay for services for everyone. That, simply, is unfair," added O'Neill.

TREB also raised concerns about the potential impact of a second land transfer tax.

"Home ownership is something that the City should be trying to encourage, not discourage. The second land transfer tax will make it more difficult for people to achieve that dream and it could hurt property values for some current home owners," said O'Neill. "It could also have far-reaching impacts on the City's whole economy by reducing the amount of money that home buyers have to spend on things like furniture, renovations, and energy-efficiency upgrades."

TREB is disappointed that the City is choosing new taxes instead of more prudent solutions. Specifically, TREB believes that the City should have waited for the Mayor's panel to report on alternative options. The Environics poll showed that 78 per cent of Torontonians think that City Council should have waited until the Mayor's panel finished its work before deciding on new taxes.

"This is a classic example of putting the cart before the horse: tax now, save later. That, simply, doesn't make sense," said O'Neill. "The Mayor appointed a panel to look for savings and other options and we applaud him for that. The panel is something that TREB, and the public, called for, but they should have been allowed to finish their work so that fair options could have been considered instead of a land transfer tax."

TREB has consistently supported fair options for dealing with the City's financial challenges, including a more fair deal with senior levels of government, and continues to support City efforts in this regard.

"Unfortunately, we disagree with the City on the land transfer tax, and we will continue to oppose it. We continue to believe that it is not fair," said O'Neill. "Let's not forget that this tax doesn't solve the City's financial challenge. We look forward to working with the City towards fair solutions. We will continue to push for a fair deal for Toronto from senior levels of government, as we always have."

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Serving more than 26,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are available on www.TorontoRealEstateBoard.com.


Board mounts powerful lobby against new fee, but critics say commissions are the real issue

Oct 19, 2007 04:30 AM Donovan Vincent Tony Wong Staff reporters

When he picked a land transfer tax as his main weapon of choice against a looming city budget crisis, Mayor David Miller landed a formidable opponent.

Just how the Toronto Real Estate Board became akin to the official opposition at city hall, powerfully influencing councillors to vote against the Miller plan, is a tale that goes as far back as last year, when the province was drafting the City of Toronto Act – the legislation that gave Toronto power to implement its own new taxes.

Unlike community groups that have only recently coalesced to defend the need for the land transfer tax, the real estate board has been in battle mode for a long time, screaming against it.

The real estate organization, along with partners such as the Ontario Real Estate Association, the Ontario Home Builders' Association and the Building Industry and Land Development Association, has conducted a massive campaign, including full-page advertising in the major newspapers, a website, and commissioning a poll asking voters what they think. (Perhaps predictably, it found 62 per cent opposed.)

As the clock ticks closer to next week's vote at city hall, the board is feverishly calling and meeting with councillors in a bid to block passage of the tax. They're especially targeting the undecided councillors. And many appear to be listening.

"They've been very active and effective,'' Councillor Denzil Minnan-Wong, a vocal opponent of the new tax, says of Von Palmer and Mauro Ritacca, the two real estate board spokespeople who have led the charge.

The real estate board, with 26,000 members and $23 million in annual revenues, is the largest organization of its kind in North America and a powerful lobby for the industry. It's widely agreed that the board's presence, along with other anti-tax groups, had a significant impact on council's 23-22 vote in July that deferred a decision on the land transfer tax until now.

Palmer says the board's message is simple: The land transfer tax, which parallels the existing provincial tax and is aimed at raising $300 million a year for the city, is unfair because it asks 5 per cent of taxpayers – those buying homes in a given year – to cover 70 per cent of the city's budget shortfall.

"If you're talking taxes, you need to spread it across the board,'' Palmer told reporters after the group's annual general meeting yesterday, attended by about 300 board members.

The organization has painted a doomsday scenario where the tax seriously hurts the Toronto real estate market – with buyers looking elsewhere, younger buyers blocked from buying a new home, and even environmental effects as buyers flock to the non-taxed 905 areas, encouraging urban sprawl.

"Well, they're obviously worried about it because it (the tax) creates a wedge between the buyer and seller, and if that happens, sales volumes will drop and it will impact commissions. That's what they're ultimately worried about," says Lawrence Smith, University of Toronto professor emeritus, who specializes in real estate economics and also manages a real estate portfolio with Toronto assets.

Board president Maureen O'Neill called the home buying tax "short-term thinking at its worst.''

She said the board has spent more than $300,000 on advertising and polling, $150,000 of that received from other organizations. "We have been throwing money at this – people are really upset."

Deputy mayor Joe Pantalone said the board played "dirty" in its campaign and has "zero credibility."

"Why haven't they adjusted those commissions? ... Prices are skyrocketing and they're making windfall profits.''


 

Some scramble to close deals in 'bit of panic' over new tax; others wonder if prices will fall

 
Oct 24, 2007 04:30 AM  Joanna Smith  Staff Reporter Toronto Star
 
Suren Mahadevan felt forced into a snap decision.
 
As confused as any first-time buyer, Mahadevan was thinking carefully about whether to buy one big house where his retired parents could live with him or two condos, one for them and one for him.
 
But when his real estate broker told him the city of Toronto's land transfer tax was probably on its way, he made his move.
 
"It just made me jump on it a little bit sooner," said the 33-year-old real-estate appraiser who spent $170,000 on one condo on Monday, even before he knew whether there would be rebates for first-time buyers. "... you just pull the trigger and get one as quickly as possible."
 
Under the new tax approved by Toronto city council Monday night, potential homeowners have until Dec. 31 to buy, and Feb. 1, 2008 to close on their new home, to avoid paying up to 2 per cent in taxes.
 
The new levy will add thousands of dollars to the price of most houses in the city. If enough buyers feel the pressure, then sellers will continue to rule the market until the end of the year. Some realtors predict the market will slow down once the tax comes into effect.
 
"I think there will be (an increase in sales) in the next couple of months but after that it will slow down more than it would have normally," said real estate broker Darshan Sivanandarajah, who advised Mahadevan, who is now looking for a second condo, to buy now.
 
"I told them, `If you're going to buy for sure, you might as well do it before the land transfer tax," said Sivanandarajah, who works for Re/Max Crossroads Realty Inc., noting one young couple decided to buy their first home several months ahead of their wedding.
 
Another realtor, Sandra Rinomato, said that there might be "a bit of a panic" among buyers rushing to close the deal before the deadline.
 
"I don't know how that will necessarily affect the market compared to what it would have been and that's something that nobody will know," said Rinomato, who is also the host of the reality-television show Property Virgins. "Unless sales skyrocket, we won't ever be able to measure it effectively."
 
Like many other realtors, Rinomato said she is more concerned with any effects the new tax will have on sellers. She said a homeowner wanting to sell for $415,000, for example, "will have a very hard time getting over $399,999, because that's the cap for the land-transfer tax rebate for first-time buyers."
 
The new tax is 0.5 per cent of the first $55,000 of a home's value, 1 per cent on the next $345,000 and 2 per cent on any portion over $400,000. But first-time buyers pay nothing on the first $400,000.
 
Real estate broker Rachel O'Hearn said the market might see "a little flurry effect" because buyers were waiting on the new tax.
 
"I think now that the decision has been made, it's going to throw people into action to get it done before the end of the year," said O'Hearn, who works for Leslie Benczik Team-Re/Max All-Stars Realty Inc. in the downtown area. "And then we'll see what kind of effect it has on the market after that."
 
Scott Kavanagh was planning to wait until spring to buy a home in Toronto. "I'll definitely start looking more aggressively now," said Kavanagh, a 28-year-old events producer who owns a house in Stouffville. "I think it's significant enough to push me to move before the end of the year."
 
Some realtors are concerned sellers on the outer edges of Toronto will be adversely affected, because buyers may opt to buy elsewhere in the GTA, where there's no new tax.
 
Kavanagh said it has crossed his mind that if the market does slow down he might actually get a better deal in 2008 – especially if there's a spike in sales now.
 

"I think that's a question that will be on everyone's shoulders," he said. "There are so many variables that come into play now."

Quick facts on the new land transfer tax
  • 100% increase to current home buying tax.
  • A second land transfer tax on top of current provincial land transfer tax.
  • Less money for downpayment, furniture, appliances or renovations.
  • No local home buying tax in 905 region.
  • Hurts those who can least afford it (first time buyers etc.)
  • Could ultimately cost over $15,000 for the average buyer.
  • No other CDN jurisdiction has two home buying taxes.
  • Toronto would have the highest land transfer taxes in Canada and the second highest in North America.
  • All first-time buyers of re-sale properties, and most first-time buyers of new homes, would be forced to pay the City's land transfer tax.
  • Toronto is the only municipality in Ontario allowed to charge a second land transfer tax.
  • Homes for sale in Toronto would be less marketable than those outside of Toronto. This could impact your property value.

Read more about the New Toronto Land Transfer Tax at my blog

So, if you are thinking of selling and buying a homes this year, should you buy or sell first?  I've had many clients purchase before they sell.  I just want you to have all the information so you can make the best decision for yourself and your family.  You may read more about buying or selling first here

Ontario Government site for Land Transfer Tax

Read about what happened in real estate last month.

I wish you much success, good health and happiness today and always! 

If you would like to discuss issues like this or other questions you may have, please email me at anytime .

Read more about the New Toronto Land Transfer Tax at my blog

Mark

 


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