Toronto to increase land transfer taxes on residential properties over $3M.
Sunday Oct 08th, 2023
In an effort to minimize the deficit the municipality of Toronto is introducing or proposing multiple measures to combat the deficit, one of them will be additional thresholds of the land transfer tax for residential properties selling at $3M or more starting January 1, 2024. Residential properties affected by it are defined as single family residences with no more than 2 residential units.
The graduated municipal land transfer for high value residential properties will be as follows:
3.5% for properties between $3M to $4M.
4.5% for properties between $4M to $5M.
5.5% for properties between $5M and $10M.
6.5% for properties between $10 and $20M.
7.5% for properties over $20M.
If you are in a position to afford what city of Toronto defines a luxury residential property, it will costs you more to purchase one. There were over 900 transactions valued over $3M (per mls) in 2022 of which (approximate and rounded figures) 580 were for properties between $3-4M, 190 for properties between $4-5M, 160 between $5-10M, 10 between $10-20M, and none over $20M.
To illustrate the changes the following is an example of what it will cost to in land transfer tax to purchase a $21M home in Toronto before January 1, 2024 and after. The changes don’t affect any property located in York, Durham or Peel regions and we are assuming this is not a first-time home buyer 😉
| Prior to January 31, 2024 | ||||||
| Purchase Price | Value Range | Provincial Rate | Municipal Rate | Provincial LTT | Municipal LTT | Total |
| $0 to $55,000 | 55,000 | 0.50% | 0.50% | 275 | 275 | 550 |
| $55,000 to $250,000 | 195,000 | 1.00% | 1.00% | 1,950 | 1,950 | 3,900 |
| $250,000 to $400,000 | 150,000 | 1.50% | 1.50% | 2,250 | 2,250 | 4,500 |
| $400,000 to $2,000,000 | 1,600,000 | 2.00% | 2.00% | 32,000 | 32,000 | 64,000 |
| Over $2,000,000 | 19,000,000 | 2.50% | 2.50% | 475,000 | 475,000 | 950,000 |
| 511,475 | 511,475 | 1,022,950 | ||||
| After January 31, 2024 | ||||||
| Purchase Price | Value Range | Provincial Rate | Municipal Rate | Provincial LTT | Municipal LTT | Total |
| $0 to $55,000 | 55,000 | 0.50% | 0.50% | 275 | 275 | 550 |
| $55,000 to $250,000 | 195,000 | 1.00% | 1.00% | 1,950 | 1,950 | 3,900 |
| $250,000 to $400,000 | 150,000 | 1.50% | 1.50% | 2,250 | 2,250 | 4,500 |
| $400,000 to $2,000,000 | 1,600,000 | 2.00% | 2.00% | 32,000 | 32,000 | 64,000 |
| $2,000,000 to $3,000,000 | 1,000,000 | 2.50% | 2.50% | 25,000 | 25,000 | 50,000 |
| $3,000,000 to $4,000,000 | 1,000,000 | 2.50% | 3.50% | 25,000 | 35,000 | 60,000 |
| $4,000,000 to $5,000,000 | 1,000,000 | 2.50% | 4.50% | 25,000 | 45,000 | 70,000 |
| $5,000,000 to $10,000,000 | 5,000,000 | 2.50% | 5.50% | 125,000 | 275,000 | 400,000 |
| $10,000,000 to $20,000,000 | 10,000,000 | 2.50% | 6.50% | 250,000 | 650,000 | 900,000 |
| $20,000,000 to $21,000,000 | 1,000,000 | 2.50% | 7.50% | 25,000 | 75,000 | 100,000 |
| 511,475 | 1,141,475 | 1,652,950 | ||||
| Difference | - | 630,000 | 630,000 | |||
Please let us know if you have any questions.
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