When you buy property or land in Ontario, you must pay a provincial tax called the Land Transfer Tax. This tax is due when the property transaction is finalized. If the property is in Toronto, you will also have to pay a Municipal Land Transfer Tax. Your lawyer will handle the payment of these taxes on the closing date, and you need to provide them with the necessary certified funds to cover all closing costs. The amount of tax you owe is based on the purchase price of the property. In some cases, the law considers the value of the property to be reasonable value.
In Ontario, there isn’t a specific “premium” tax rate solely for multi-residential properties under the Land Transfer Tax (LTT) system. The standard LTT rates apply regardless of whether the property is residential or multi-residential.
However, certain cities, such as Toronto, may have additional considerations or higher tax rates for different types of properties, but these would typically be reflected within the municipal portion of the land transfer tax (MLTT).
To get precise details, particularly for large-scale multi-residential or commercial properties, it’s often advisable to consult with a real estate lawyer or tax professional who can provide guidance specific to your transaction and location.
PROVINCIAL LAND TRANSFER TAX
(Applies to all Ontario properties, including Toronto)
0.5% on the first $55,000
plus 1.0% of the amount from $55,001 to $250,000
plus 1.5% of the amount more than $250,001 to $400,000
plus 2.0% of the amount more than $400,000
TORONTO LAND TRANSFER TAX
(Applies to Toronto properties only)
0.5% on the first $55,000
plus 1.0% of the amount from $55,001 to $250,000
plus 1.5% of the amount more than $250,001 to $400,000
plus 2.0% of the amount more than $400,000