Effective March 1st, City Council has adopted changes to the fee structure of the municipal land transfer tax. Purchasers of real estate in Ontario are required to pay this tax on closing based on the following formula:
0.5% is paid on the first $55,000 of property value;
1% is paid on the next 195,000 of property value;
1.5% is paid on the next $150,000 of property value; with
2% paid on any value in excess $400,000 up to $2,000,000
Amounts exceeding $2,000,000 where the land contains one or two single family residences will be charged at 2.5%
In short $4,475 in municipal LTT is owed on the first $400,000 with 2% payable on any value in excess of that amount up to $2,000,000. If your home cost $2,100,000, the total amount of municipal LLT owing would be $38,975.00.
In addition, a provincial LLT, which matches the fee schedule of the municipal Land Transfer Tax as stated above, is owed in addition to the provincial LLT for properties located in Toronto.