Municipal Land Transfer Tax

Municipal Land Transfer Tax (MLTT) is a tax that certain municipalities, such as the City of Toronto, choose to impose on property transactions that occur within their boundaries in addition to the land transfer tax (LTT) already charged by the provincial government. It is calculated the same way as LTT, as follows:

  
    Value of Consideration

    MLTT Rate

    Up to and including $55,000
    0.5%
  
    Exceeding $55,000, up to and including $250,000
    1%
  
    Exceeding $250,000, up to and including $400,000
    1.5%
  
    Between $400,000 and $2,000,000
    2%
  
    Exceeding $2,000,000, where the land contains one or two single family residences
    2.5%

This basically doubles the tax for property purchased within Toronto city limits, but MLTT can also be returned as a rebate to first-time home buyers. While eligibility criteria is the same for both LTT and MLTT refunds, the maximum amount available for the municipal tax is a little bit higher at $4,475.