Is the Ontario Land Transfer Tax (LTT) applied differently in the City of Toronto?

Yes, the Ontario Land Transfer Tax (LTT) is applied differently in the City of Toronto compared to the rest of Ontario. In addition to the provincial LTT, which applies to properties across Ontario, the City of Toronto has its own municipal land transfer tax known as the Toronto Land Transfer Tax (TLTT).

The TLTT is imposed on top of the Ontario LTT, effectively doubling the land transfer tax burden for buyers in Toronto. However, the TLTT has similar tiered rates to the Ontario LTT, and the tax rates are applied based on the purchase price of the property.

As of 2022, the TLTT rates for residential properties in Toronto are as follows:

• 0.5% on the first $55,000 of the purchase price
• 1.0% on the portion of the purchase price between $55,000 and $250,000
• 1.5% on the portion of the purchase price between $250,000 and $400,000
• 2.0% on the portion of the purchase price between $400,000 and $2 million
• 2.5% on the portion of the purchase price exceeding $2 million for single-family residences and duplexes
• 2.0% on the portion of the purchase price exceeding $400,000 for all other types of properties

Similar to the Ontario LTT, first-time homebuyers in Toronto may be eligible for a rebate of up to $4,000 of the TLTT.

It's important for buyers in Toronto to be aware of both the Ontario LTT and the TLTT and budget accordingly for these taxes as part of their overall closing costs when purchasing a property. These taxes can significantly impact the total cost of buying a home in Toronto compared to other parts of Ontario where only the provincial LTT applies.