Are you prepared to pay more taxes in order to find the right home for you and your family?
In an effort to generate more revenue for the City of Toronto, Toronto’s Council has approved a new Mansion Tax for homes over $3 million.
If you buy and close on a property prior to Dec. 31st, 2023 you can avoid this additional tax.
The new graduated land transfer tax (LTT) increases would apply as follows:
|Value of Property||New Tax||Old Tax|
|$4 mill to $5 mill||4.5% Toronto + 2.5% Province||2.5% Toronto + 2.5% Province|
|$5 mill to $10 mill||5.5% Toronto + 2.5% Province||2.5% Toronto + 2.5% Province|
|$10 mill to $20 mill||6.5% Toronto + 2.5% Province||2.5% Toronto + 2.5% Province|
|$20 mill and more||7.5% Toronto + 2.5% Province||2.5% Toronto + 2.5% Province|
What does this mean?
If you have a home valued at over $3 million and want to upsize, you might want to consider selling your home this fall and ensure you close before Christmas so that you can avoid this additional tax which will most likely kick in January 2024.
This also means that those who live in houses over $3 million will most likely stay put after Jan. 2024 further restricting our housing inventory.
Here is an example to show you how much you will pay with this additional tax:
|Property value||LTT until Dec. 31, 2023||LTT after Jan. 1st, 2024||Increase Tax Owed|
Have any questions? Looking to make a move before the end of this year? We can help.
Contact us: 416.509.3286 or Davelle@BosleyRealEstate.com