A buyer who is not a first-time purchaser buys a single-family home in Toronto for $800,000. How much Toronto Municipal Land Transfer Tax (MLTT) is payable?
Correct Answer
D) $12,475
Toronto's MLTT on a single-family home uses brackets of 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000 and 2% to $2,000,000: $275 + $1,950 + $2,250 + $8,000 (2% of the $400,000 above $400,000) = $12,475. The buyer pays it in addition to provincial Land Transfer Tax of the same amount, so $24,950 is the combined total, not the municipal tax.
Why This Is the Correct Answer
$12,475 is the Toronto MLTT on $800,000: $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000 and $8,000 on the final $400,000 at 2%. The question asks only for the municipal tax.
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