In Toronto, what Municipal Land Transfer Tax rate applies to the portion of a single-family home's price between $400,000 and $2,000,000?
Correct Answer
A) 2.0%
Toronto's Municipal Land Transfer Tax is graduated from the first dollar: 0.5% up to $55,000, 1.0% to $250,000, 1.5% to $400,000, and 2.0% on the portion from $400,000.01 to $2,000,000, with higher rates above $2 million for properties with one or two single-family residences. So 2.0% is the marginal rate for that band, and the MLTT is payable in addition to the provincial land transfer tax.
Why This Is the Correct Answer
This is correct because the City of Toronto's MLTT rate for the band from $400,000.01 to $2,000,000 is 2.0%. That is the marginal rate on that portion of the price, applied after the lower bands have been taxed at their own rates.
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