A magnetic tool holder for a ladder 14 providing means for holding the selective positioning of tools to the top step 24 of a ladder. The tool holder is comprised of a planar magnetic material 12 being substantially rectangular fixedly attached to the top step 24 of the ladder. The magnetic material 12 is positioned on the underside or topside of the top step 24 of the ladder and either fastened thereto by an adhesive compound 20 or threaded fasteners such as nut and bolt 22, 26.