Land Transfer Tax
Land transfer tax (LTT) is a tax that is paid by the buyer of a residential property; sellers never pay this tax. LTT is a one-time cost that must be paid in cash on closing of the property and cannot be rolled into a mortgage.
Any property purchased in the city of Toronto pay double the LTT (once provincially and one municipally). Toronto’s LTT applies within the following boundaries: Steeles Avenue as the North border, Etobicoke as the West border, Scarborough as the East border and Lake Ontario as the South border.
Provincial and Municipal LTTs are both calculated based on the same system with marginal tax rates increasing based on tiers up to the purchase price:
Marginal Tax Rate
First $55,000: 0.5%
$55,000.01 - $250,000: 1.0%
$250,000.01 - $400,000: 1.5%
$400,000.01 - $2,000,000: 2.0%
$2,000,000+: 2.5%