A Breakdown of the City's proposed land transfer tax:
- a 0.5% tax on homes under $55,000 (do these even exist?)
- a 1% tax on homes between $55,000 and $250,000
- a 1.5% tax on homes between $250,000 and $400,000
- a 2% tax on homes over $400,000
- a complete tax rebate for first-time buyers on homes under $227,000
The above proposed taxes are to be charged on top of existing provincial land transfer taxes.
It's assumed that some changes will be made to this proposal before it's voted on on October 22, 2007. Those changes likely include combining homes priced between $55,000 to $400,000 into the 1% rate and not charging these Toronto Taxes on agreements inked before December 31st, 2007.
What's in it for you? If you're a first-time buyer, buying a home in Toronto at the average price of $380,000 would cost you an additional $3,800 under the new 1% tax rate.
The mayor contends these new taxes would bring in an additional $300 million a year to the City.