City of Toronto Council is considering changes to the Toronto Land Transfer Tax that could mean additional Toronto Land Transfer Tax costs for some home buyers with a closing date on or after March 1, 2017, when it is expected to be harmonized with the provincial LTT.
Click here to see the detailed City of Toronto Notice on the "original" proposed changes posted in December 2016.
Status
The proposed changes to the Toronto Land Transfer Tax will be considered by Toronto City Council on February 15, 2017. The proposal going forward to City Council would have the following effect, AS OF MARCH 1, 2017, if approved, for real estate transactions closing on or after this date:
- Add an additional LTT of 0.5% of the value of a residential or non-residential property from $250,000 to $400,000 (an additional $750)
- Add an additional LTT of 0.5% of the value of a residential property above $2 million.
- Add an additional LTT of 0.5% of the value above $400,000 of a non-residential property.
- Increasing the maximum allowed First-Time Home Buyer Rebate to $4,475, up from $3,725.
- Amend the first-time home buyer rebate program eligibility rules to restrict rebate eligibility to Canadian citizens or permanent residents of Canada.
THESE PROPOSALS HAVE NOT YET BEEN APPROVED BY CITY COUNCIL, WHICH WILL MEET ON FEBRUARY 15 TO CONSIDER THEM. TREB WILL PROVIDE AN UPDATE ONCE CITY COUNCIL MAKES A DECISION.
TREB Efforts Achieved Significant Concessions
TREB has undertaken a comprehensive campaign to oppose the proposed changes. As a result of these efforts, significant concessions have been made to the proposals that are going forward for City Council's consideration. Under the original proposal, first-time buyers would have been forced to pay an additional $475 in Toronto LTT, and many first-time buyers would have lost eligibility for the first-time buyer rebate entirely, meaning a total LTT increase of $4,475. As a result of TREB's efforts, both of these proposals are NOT being recommended for approval by City Council. If the proposals are approved as currently being recommended, first-time home buyers will NOT see any change.