Navigating Upcoming Financial Tides in Toronto

Your spending power will be affected by changes in the City of Toronto.

We all know that the City of Toronto is in dire financial straits. Most also know that new taxes and initiatives have been passed related to housing that will impact the consumer’s spending dollar. But did you know the details?

Here are a few important things you should know.

The City of Toronto already has a double land transfer tax on all residential transactions - part goes to their coffers; part to the Province. In September, they adopted an additional graduated Municipal Land Transfer Tax (MLTT) for homes above $3 million.

The fees will be assessed as follows:

Price of Homes: Additional MLTT

$3 million - $4 million 3.5% additional MLTT

$4 million - $5 million 4.5% additional MLTT

$5 million - $10 million 5.5% additional MLTT

$10 million - $20 million 6.5% additional MLTT

Over $20 million 7.5% additional MLTT

These taxes will take effect on January 1, 2024. So, if you are considering buying and could be impacted by this new tax, now is the time to act so you can close before the end of the year. BUT - that is not all.

City of Toronto staff have been instructed to investigate several other housing-related issues:

1. Increasing the Vacancy Home Tax from 1% to 3%.

2. Introducing a foreign buyers land transfer tax.

3. Investigate an additional land transfer tax for owners that own multiple properties in the City.

4. Develop a multi-year approach to property taxes.

5. Evaluate a possible graduated municipal property tax rate for higher-valued residential properties that are not primary residences.

Other initiatives are also being investigated, but the ones noted above are the main ones that will impact home buyers.

Stay tuned for details as they become available.

If you are ready to buy or sell in the coming weeks or months, our team is here to help you every step of the way.