Toronto Municipal Land Transfer Tax Increase

The City of Toronto has increased its municipal land transfer tax rates to match the recent changes to provincial land transfer taxes, effective March 1, 2017.

At its meeting on February 15, 2017, the City Council of Toronto approved and adopted Bill 123 to amend City of Toronto Municipal Code Chapter 760 Taxation and Municipal Land Transfer Tax  (By-law No. 122-2017). Bill 123 was subsequently enacted on February 16, 2017, and its stated objectives are to harmonize certain aspects of the municipal land transfer tax regime with those of the Ontario land transfer tax regime. There are three main changes to the municipal regime:

1. The tax rates have been increased to match those of the provincial regime (which were increased on November 16, 2016–our firm's overview of this increase can be found here);