Land transfer taxes directly impacting housing supply
The latest in a series of poll results released by the Toronto Real Estate Board reports that a majority of Greater Toronto Area residents oppose the idea of new municipal land transfer taxes.
Toronto is the only municipality with its own land transfer tax (in addition to the provincial land transfer tax). TREB found that 79% of Torontonians support reducing the tax and 70% want to see it repealed completely.
The average selling price in the GTA in August 2018 was $765,270. According to the TREB land transfer tax calculator, the provincial land transfer tax on a home of this price would be $11,780, and the Toronto land transfer tax would be the same amount! That’s more than $23,000 in taxes just for moving to a home in Toronto.
A separate C.C. Howe Institute study says that the Toronto land transfer tax is directly responsible for the housing supply shortage by about 16% a year. People put off moving because once they factor in the land transfer taxes, the expense can be too much to handle
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The TORONTO REAL ESTATE BOARD is a not-for-profit corporation founded in 1920 by a small group of real estate practitioners. TREB is the collective voice for both its commercial and residential REALTOR® Members and operates under the direction of an elected voluntary Board of 16 Directors.