Toronto’s New Luxury Land Transfer Tax
As of January 1st, 2024, the City of Toronto has implemented new thresholds and rates to the Toronto Municipal Land Transfer Tax (MLTT). Previously the MLTT rate capped at 2.5% for properties over $2 million. The additional thresholds are for properties over $3 million. The MTLL applies to properties containing at least one and not more than two single family residences, within the following boundaries, west of Etobicoke, south of Steeles Avenue, and east of Scarborough.
Here is the complete list of thresholds and rates:
| Value of Consideration (Purchase Price of Property) | Current Tax Rate |
|---|---|
| $55,000 or less | .5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% |
| $3,000,000 – $4,000,000 | 3.5% |
| $4,000,000 – $5,000,000 | 4.5% |
| $5,000,000 – $10,000,000 | 5.5% |
| $10,000,000 – $20,000,000 | 6.5% |
| $20,000,000 and over | 7.5% |
The City of Toronto’s MLTT Calculator can be found at https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/mllt-calculator/
As a law firm dedicated to you, we are here to guide and assist as needed. Please feel free to reach out to us if you have any questions regarding the MLTT, your upcoming real estate transaction or any other matter.
Contact our office at 1.888.820.1321 or via email at notices@rabideaulaw.ca. We look forward to hearing from you.