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Changes to The Toronto Land Transfer Tax

Changes to The Toronto Land Transfer Tax

Changes were recently approved for the Toronto Land Transfer Tax (LTT) which will cause additional Toronto Land Transfer Tax costs for some home buyers with a closing date on or after March 1, 2017.

Here is a list of changes to the Toronto LTT that have officially been approved by Toronto City Council as of yesterday – Wednesday February 15, 2017. The changes are effective for any real estate transactions closing on or after March 1, 2017:

  • Added an additional LTT of 0.5% of the value of a residential or non-residential property from $250,000 to $400,000 (an additional $750)
  • Added an additional LTT of 0.5% of the value of a residential property above $2 million
  • Added an additional LTT of 0.5% of the value above $400,000 of a non-residential property
  • Increasing the maximum allowed First-Time Home Buyer Rebate to $4,475, up from $3,725
  • Amended the first-time home buyer rebate program eligibility rules to restrict rebate eligibility to Canadian citizens or permanent residents of Canada

The Toronto Real Estate Board (TREB) mounted a comprehensive campaign to oppose the changes. Thanks to this opposition, the following concessions were made:

  • TREB pushed for an increase in the rebate from $3,725 to $4,475, which means that first-time buyers will not face an increase.
  • All first-time buyers will be eligible for a rebate.