Another change in the Toronto Land Transfer Tax saga! First, the good news; first time buyers will be exempt from the tax on the first $400,000 of their home. This applies to all homes - new developments and resale homes. So if you're thinking about buying your first place, you can breathe easy. If your home costs more than $400,000 you can only pay the tax on the overage amount.The bad news then is really only for people who are selling their homes and buying another one. For a $400,000 home it costs an additional $3725. For a $650,000 home it will cost you an additional $8725. Ouch

What was approved by the city council? A second land transfer tax at the following rates:

Residential

0.5% of the amount of the purchase price up to and including $55,000

1% of the amount of the purchase price between $55,000 and $400,000

2% of the amount of the purchase price above $ 400,000

When does it take effect? February 1, 2008

Where does this apply? Within the city of Toronto and NOT outside it though that could become a possibility