|
Published: November 2007
I’m sure you’ve heard all the hype about the new Land
Transfer Tax Torontonians have just officially been saddled with. This is
a second Land Transfer Tax, payable in addition to the existing Provincial
Land Transfer Tax. There will be some ‘breaks’, including rebates for
first-time buyers, a reduced rate and residential grandfathering for
existing transactions.
The new Toronto Land Transfer Tax will be calculated
as follows for Residential purchases:
0.5% on the amount of the purchase price up to and
including $55,000 plus
1% on the amount of the purchase price between $55,000
and $400,000 plus
2% on the amount of the purchase price above $400,000
The new Toronto Land Transfer Tax will be calculated
as follows for Commercial purchases:
0.5% on the amount of the purchase price up to and
including $55,000 plus
1% on the amount of the purchase price between $55,000
and $400,000
1.5% on the amount of the purchase price between
$400,000 and 40 million plus
1% on the amount of the purchase price above 40 million
This new tax is to take effect February 28, 2008. Any
existing transactions where the Buyer and Seller have entered into an
Agreement of Purchase and Sale prior to December 31st, 2007 will be
charged and “rebated” the full amount of the Toronto Land Transfer Tax if
the closing is on or after February 1, 2008. Transactions closing before
February 1, 2008 will not be charged the Toronto Land Transfer Tax.
Purchasers with an Agreement signed after December 31, 2007 with a closing
before February 1 2008 will not be required to pay the additional tax.
Purchasers with an Agreement signed after December 31, 2007 with a closing
on or after February 1 2008 will be required to pay the full amount.
First home buyers of new and resale homes will receive
a rebate of the Toronto Land transfer Tax of up to $3,725 (a 100% rebate
on homes purchased up to $400,000).
*Note: This is a Toronto Land Transfer Tax only. It
applies to transactions within the City of Toronto only. For Now! Rest
assured other municipalities will be keeping a vigilant eye on how well
this will produce income – it could be coming to your town soon! But for
now it is just another reason not to buy a home in Toronto. For outlying
areas it may be a reason to act now before your area adopts the same
philosophy. If you have any questions, contact the City of Toronto at
416-338-0338.
If I can be of any help to you, your friends, relatives
or associates, please do not hesitate to
contact me. Your referrals are greatly appreciated. |
