Municipal Land Transfer Tax

MLTT Rates and Calculation

Proposed Municipal Land Transfer Tax (MLTT) changes

At its meeting of December 13-15, 2016 City Council deliberated item EX20.2 and decided that changes to the Municipal Land Transfer Tax (MLTT) rate structure and rebate structure and eligibility criteria, should be considered as part of the City's 2017 Budget process, with a proposed implementation date of March 1, 2017.

The proposed changes are illustrated in the chart below, and are based on harmonizing the City's tax structure with the recently announced Provincial LTT changes that will be implemented January 1, 2017.

Proposed New Municipal Land Transfer Tax rates for March 1, 2017

Value of Consideration 
Residential *
All other properties
Current Rates
Proposed Rates
 
 
Current Rates
Proposed Rates
 
$0-$55,000.00
0.50%
0.50%
0.50%
0.50%
$55,000.01 - $250,000.00
1.00%
1.00%
1.00%
1.00%
$250,000.01 - $400,000.00
1.00%
1.50%
1.00%
1.50%*
>$400,000.00
2.00%
2.00%
1.50%
2.00%*
>$2 million
2.50%*
>$40 million
1.00%
* Residential = properties with not more than 2 single-family residences
 
Proposed First Time Home Buyers Rebate
Current Maximum Rebate
Proposed Maximum Rebate
$3,725
corresponding to VOC $400,000
$4,000*
corresponding to VOC $368,000*

*Proposed amendments

In addition, to the above identified MLTT rate changes, the City is proposing to amend the first-time homebuyer rebate program eligibility rules to make them consistent with the current Ontario Land Transfer Tax (LTT) rules by restricting rebate eligibility to Canadian citizens or permanent residents of Canada.

Two important differences between the City's proposals and the new Provincial rules:

  • the City's proposed changes did not include grandparenting provisions to exempt transactions that will have been initiated prior to March 1, 2017
  • the City will consider implementing an eligibility cap for the first time home buyer rebate based on a maximum eligible transaction price (amount yet to be determined).

 

For more information, please see the December 13, 2016 Council report and decision.

Final decisions regarding amendments to the MLTT rate and rebate structure are expected to be made and adopted by Council at its meeting on February 15, 2017.

Current MLTT Rates and Calculations

The MLTT will be charged on a graduated basis depending on the value of consideration paid for the property.

For property containing at least one, and not more than two, single family residences with a consideration value of:

Value of ConsiderationMLTT Rate
Up to and including $55,000.00 0.5%  plus
$55,000.01 to $400,000.00 1.0%  plus
Over $400,000.00 2.0%


For all other property with a consideration value:

 
Value of ConsiderationMLTT Rate
Up to and including $55,000.00 0.5%  plus
$55,000.01 to $400,000.00 1.0%  plus
$400,000.01 to $40,000,000.00 1.5%  plus
Over $40,000,000.00 1.0%



Example: A home with a consideration value of $500,000.00 (excluding GST):
 

MLTT RateCalculation
0 to $55,000.00 $55,000.00 x 0.005 = $275.00
$55,000.01 to $400,000.00 $344,999.99 x 0.01= $3,450.00
$400,000.01 to $500,000.00 $99,999.99 x 0.02= $2,000.00
Total MLTT= $5,725.00