In Toronto, there are several real estate taxes and fees that property owners may encounter. As a home owner or real estate investor in the city, it is important to underhand the various real estate taxes you are responsible for.
Similar to a land transfer tax, this tax is payable by the purchaser upon acquiring a property. The amount is calculated based on the property’s purchase price and varies depending on the value of the property. The City of Toronto has its own PTT, in addition to the provincial land transfer tax imposed by the province of Ontario.
This tax is specific to Toronto and is paid by buyers when they purchase property within the city. Like the PTT, it is based on the property’s purchase price and is in addition to the provincial land transfer tax.
Property owners in Toronto are required to pay property taxes, which fund municipal services such as schools, emergency services, and infrastructure maintenance. The amount of property tax owed is based on the assessed value of the property, as determined by the Municipal Property Assessment Corporation (MPAC).
These charges are levied by the city on new developments or redevelopments to help cover the cost of infrastructure expansion or upgrades necessitated by the development. They are typically paid by developers but can influence property prices and development costs, indirectly affecting property owners and buyers.
Introduced to address concerns about housing affordability and supply, Toronto implemented a vacant homes tax, also known as the Vacant Home Tax or the Empty Homes Tax. Property owners who leave their residential properties unoccupied for a significant portion of the year may be subject to an additional tax.
These are some of the key real estate taxes and fees that property owners may encounter in Toronto. It’s essential to consult with a real estate professional or tax advisor for specific information tailored to individual circumstances.
