Your real estate agent in Mississauga
October 23rd, 2018 
Randy Selzer
Sales Representative

Visit me on LinkedIn
Visit my blog
Visit me on Facebook
Follow me on Twitter
Visit me on LinkedIn
My videos on YouTube
**NEW** Bromsgrove Rd Update
**NEW** Toronto Real Estate Slump
**NEW** Chinese TV Interview
Mississauga luxury homes
Top 100 Neighbourhoods
Why Use Randy to Sell Your Home?
Why Use Randy to Buy Your Home?
GTA Real Estate **Daily News**
Search for Property
Condos for Sale at Square One
***FREE*** ***STAGING***
Clarkson Real Estate
Search House for Sale in Mississauga
Special Buyers' Program - HOT New Listings Delivered to You
Oakville Clearview Homes
Selling Your House in Mississauga, Oakville, Toronto
About Randy
Information Centre - Mississauga Real Estate
Real Estate Market Report
Important Resources
Mortgage Calculator
print version

Toronto Land Transfer Tax

In late 2007 the City of Toronto enacted their own Land Transfer Tax. For closings Feb 1, 2008 and later, for any real estate purchased within the Toronto city boundaries, there is now a second tax to pay, in addition to the existing Provincial Land Transfer Tax! This new double tax only applies within the city of Toronto. Homebuyers who purchase a house in area code 905 only pay the single, provincial tax. Both the Ontario and the Toronto Land Transfer Taxes are payable in full on the closing day (the day you get the keys to your new property), and these taxes form a significant part of overall closing costs for you, the buyer.

Toronto Land Transfer Tax Formula

The formula for calculating the new City of Toronto Land Transfer Tax is as follows:

  • for a purchase price up to $55,000: multiply price x 0.5% *
  • for a purchase price from $55,001 to $400,000: multiply price x 1.0% and deduct $275
  • for a purchase price over $400,000: multiply price x 2.0% and deduct $4275.00

Using the above formula, you can see that for a purchase of a house or condo at a price of $400,000, the Toronto land transfer tax to pay would be: $400,000 x's 2% = $8000 minus $4275 = $3725, or nearly 1 per cent

Remember, the Toronto tax is an extra tax which is in addition to the Ontario tax payable.

*for lower amounts, note that this new tax can apply to the sale of a condominium locker or parking space, for example


First Time Buyers' Exemption

First time buyers have an exemption, if the residential property they are purchasing is less than $400,000, there is no City of Toronto land transfer tax to pay. This, of course, is separate from the requirements of the Ontario Land Transfer Tax, where a differrent formula applies.


Land Transfer Tax on Commercial Properties

Different rules and rates apply for non-residential properties, i..e commercial properties. With new home construction, rates are calculated net of HST. It's best to check with a real estate professional or lawyer, to have a full understanding of what taxes you are required to pay when buying non-residential properties.


author: Randy Selzer

back to real estate Mississauga

View more services  
adminlistingsprivacy policycontactsite map