Toronto Land Transfer Tax Cash Cow

Posted By on Jun 20, 2014 | 0 comments

Toronto is the only city in North America were homebuyers get taxed twice when…(forgive my mistake, allow me to restart…)

getting-screwedToronto is the only city in North America were homebuyers get screwed twice when buying a home.

Back in 2008 our mayor and city council decided that homeownership in the city was not expensive enough and they decided to introduce this wonderful S&M tool to help homebuyers satisfy their needs.

The City has just announced that last year our beloved municipal land transfer tax generated $40 million more than expected…Total revenues exceded $356 Million!!

 Is it time to reduce this tax?…Should we give Rob Ford one more mandate so that he can finally scrap it? 😉

2015-05 dont-tax-my-dream

A study recently commissioned by the Ontario Real Estate Association claims that this tax is responsible for a 2.3 Billion drop in economic activity and that scrapping it would create nearly 15000 new jobs over the next five years.

Real estate and construction fuel our economy, when a homebuyer has to dish out over $12,000 in land transfer tax for the purchase of a $500K house, that is $12,000 less to spend on furniture, home renovations etc.

There is also one more benefit for the local economy that this study missed:

Without the land transfer tax, homebuyers could afford to buy a more expensive house and I would get a higher commission on the sale.  That would be a tremendous benefit for MY local economy and it will indirectly benefit LCBO stores, Strip clubs, bars, Pizzerias and Gelaterias all over the city 😉

It is a win-win situation, please take a minute to write to your local city councillor to let them know that Daniel needs to have more fun.


By the way when I am not busy writing these informative blog posts, I am helping people buy and sell real estate. I am a full time, full service realtor with 10 years experience as a home renovation contractor