Last week the City of Toronto approved a new graduated Municipal Land Transfer Tax Rate. Recall, when you purchase any property in Ontario you will pay the province a tax for the land that property sits on. If you purchase in the City of Toronto, you would have a Municipal Land Transfer Tax, in addition to the Provincial Land Transfer Tax; in short you are paying two taxes.
Beginning in Jan 2024, residential properties valued at $4M and above will have a 3.5% tax applied, a 4.5% tax on homes up to $5M, a 5.5% tax on homes up to $10M, a 6.5% tax on homes up to $20M, and, finally, homes over $20M would pay with a 7.5% tax.
Toronto Council also will be looking at the possibility of increasing the Vacant Home Tax rate from 1% to 3%, which would follow in the footsteps of what we saw in Vancouver 2021.