ILN: Buying and Selling Real Estate - An International Guide

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[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]

- for properties containing at least one but no more than two single- family residences:

In the City of Toronto, a municipal land transfer tax is also due on the registration of a transfer/deed in addition to the provincial land transfer tax. This municipal land transfer tax is calculated as follows:

Value of Consideration

MLTT Rate

Up to and including $55,000.00

0.5%

$55,000.01 to $250,000.00

1.0%

$250,000.01 to $400,000.00

1.5%

$400,000.01 to $2,000,000.00

2.0%

Over $2,000,000.00

2.5%

Over $3,000,000 and up to $4,000,000

3.5%

Over $4,000,000 and up to $5,000,000

4.5%

Over $5,000,000 and up to $10,000,000

5.5%

Over $10,000,000 and up to $20,000,000

6.5%

Over $20,000,000

7.5%

- for all other properties, one-half of 1% on the first $55,000 of the purchase price, 1% of the balance of the purchase price up to and including $250,000, 1.5% of the purchase price up to and including $400,000, and 2% on the balance of the purchase price at $400,001 and above. First-time homebuyers (buyers that have not owned real estate anywhere else in the world) may be eligible for a refund of all or part of the tax, up to a limit. Certain transfers, such as between spouses for no consideration, may be exempt from the tax.

Non-Resident Speculation Tax Effective April 21, 2017, and recently amended on October 25, 2022, 2022 a non- resident speculation tax (NRST) of 25% has been imposed on the purchase or acquisition of an interest in a residential property located in the Province of Ontario by an individual or corporation controlled by a person who is not a citizen or permanent resident of Canada or by foreign corporations and taxable trustees. The NRST applies to the transfer of “designated land”, which is considered land that contains at least one and no more than six single family residences.

ILN Real Estate Group – Buying and Selling Real Estate Series

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