A buyer who is not a first-time home buyer purchases a single-family home in the City of Toronto for $1,200,000. What is the total land transfer tax payable, Ontario provincial tax plus Toronto municipal land transfer tax?
Correct Answer
B) $40,950
Ontario LTT on $1,200,000 is 0.5% of $55,000 ($275) plus 1% of $195,000 ($1,950) plus 1.5% of $150,000 ($2,250) plus 2% of $800,000 ($16,000), which is $20,475. Toronto's MLTT uses the same brackets up to $2,000,000 for a single-family residence, so it is also $20,475. The total is $40,950.
Why This Is the Correct Answer
Provincial tax: $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000, and $16,000 on the $800,000 above $400,000, for $20,475. Toronto MLTT at this price is the same $20,475. Together they come to $40,950.
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Sarah lists her home with ABC Realty under an exclusive listing agreement that expires on June 30th. On July 15th, she sells the property to a buyer who first viewed the home during an open house hosted by ABC Realty in May. Assuming a standard holdover clause exists, what is the likely outcome?