MLTT tax change for the City of Toronto in 2024

MLTT tax change for the City of Toronto in 2024

The vast majority of Torontonians were planning to ring in 2024 with champagne and resolutions – but

considering raising taxes on some properties was not part of their New Year’s plans – even though

that’s a costly reality. The City of Toronto is introducing a new downtown land transfer tax rate cap on high-value homes.

transfer tax rate cap on high value homes. This new tax rate will apply to properties containing at least one and no more than two single

properties that contain at least one and no more than two single-family homes, and there is no deferral of the old rate.

 

This means that the current City Land Transfer tax rate will continue to apply to vacant homes and other categories of property, such as commercial properties and apartment buildings.

property categories, such as vacant and commercial properties and apartment buildings.

 

Here are the current and new MLTT thresholds that apply to affected high-value homes

 

Considered value MLTT tax rates for single family homes / duplexes

 

Current basis and MLTT rate

Up to $55,000 – 0.5%

Above $55,000 to below $250,000 – 1.5 %

Over $250,000 to $400,000 – 1.5 %

Over $400,000 to under $2,000,000 – 2%.

Over $2,000,000 to under $3,000,000 – 2.5 %

Additional thresholds and rates effective January 1, 2024

Over $3,000,000 to under $4,000,000 – 3.5 %

Over $4,000,000 to $5,000,000 – 4.5 %

Over $5,000,000 to under $10,000,000 – 5-.5%

Over $10,000,000 to under $20,000,000 – 6.5%

Over $20,000,000 – 7.5%