A buyer who is not a first-time buyer purchases a $1,200,000 home in the City of Toronto. What is the total land transfer tax payable, provincial and municipal combined?
Correct Answer
C) $40,950
Ontario LTT on $1,200,000 is $4,475 on the first $400,000 plus 2% of the $800,000 above it ($16,000), or $20,475. Toronto's MLTT uses the same brackets up to $2,000,000, so it is also $20,475, for a total of $40,950.
Why This Is the Correct Answer
Each tax equals $4,475 + 2% × $800,000 = $20,475. Two taxes of $20,475 total $40,950.
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