Miller Has NEW Land Transfer Tax Passed

Posted on October 23, 2007 at 12:07 pm
Filed Under Canadian Taxes, Financial Planning, Real Estate

As of yesterday it became official that David Miller’s new land transfer tax proposal has been passed.

As of January 1st, 2008 second and subsequent home purchasers will be forced to pay a larger land transfer tax from between 0.5% and 2.0% depending on the purchase price of your new home. The only exceptions are families who are buying their first home up to a maximum of $400,000, and a 1% cap on the tax of residential and commercial properties valued between $55,000 and $400,000.

What’s worse is that the original proposal was that this new tax would replace the need for a raise in property taxes throughout the GTA. However, as the Globe & Mail reported late yesterday, it appears that we can still expect a raise in property taxes sometime in 2008. It seems to just keep getting better, doesn’t it?

Your Take-Away: If you are looking to buy and close on a home anytime after January 1st, 2008 you will be forced to pay this new land transfer tax. What that means for someone looking to buy their second or subsequent home is that you could lose up to an additional $10,000 in land transfer tax on a $500,000 home. If you have the chance to buy and close sooner, it may just be something to seriously consider.

It’s not too much fun when writing about new taxes and the reality of our bottom line shrinking, but knowledge is power and hopefully this information will prove to be beneficial for those of you considering a new home in the near future.

Enjoy the rest of your day!

Chris

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