Land Transfer Tax
The Ontario land transfer tax is a provincial tax payable by the purchaser of real estate based on the purchase price of a home upon registration of a Transfe - Deed of Land in the Ontario Land Registry Office at closing. City of Toronto home buyers will pay additional taxes, exceptions apply to first time home buyers, call for details.
City of Toronto Land Transfer Tax Costs
On October 23, 2007, the City of Toronto approved a municipal Land Transfer Tax that will be levied in addition to the current Ontario Provincial Land Transfer Tax to be effective for closings on and after February 1, 2008.
The Toronto City Land Transfer Tax is as follows:
| 0.5% of the amount of the purchase price up to $55,000.00 |
| 1.0% of the purchase price between $55,000.00 and $400,000.00 |
| 2.0% of the purchase price above $400,000.00 (for residential properties) |
The formula (for a home purchase) for the City of Tronto Land Transfer Tax will be as follows:
- up to $55,000: multiply price x 0.5%
- from $55,001 to $400,000: multiply price x 1.0% and deduct $275
- for a price over $400,000: multiply price x 2.0% and deduct $4275.00
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| NOTE: if the property purchased has more than two residential units or is a commercial property and the price exceeds $400,000, multiply the total price x 1.5% and deduct $2,275.00) |
NOTE: If the buyer of property in the City of Toronto is a qualified first time buyer (and this applies to both builder and resales) then the buyer is entitled to a REBATE up to a maximum amount of $3,725.00, being the tax on the value of a home in the amount of $400,000.00. Basically, a first time buyer buying a home for $400,000.00 (or less) is entitled to a full rebate of the City of Toronto Land Transfer Tax. If the Toronto first time buyer’s purchase price is $400,000 (or less), NO Toronto land transfer tax need be paid if a full rebate is available. If the price exceeds $400,000 and the first time buyer is entitled to ONLY a partial rebate of Toronto Land Transfer Tax (since maximum 1st time buyer rebate is only $3,725.00), then the full Toronto Land Transfer Tax must be paid on closing and a partial refund application is to be made by the buyer after the transaction closes; this same rule applies, (no matter what the price) if there are 2 or more named buyers and only one is a first time buyer. Call Claire for further details on how to calculate your exact land transfer tax or land transfer tax exemption.
Land Transfer Tax Ontario Canada
Ontario Government Land Transfer Tax Costs
On transfers of residential real property in Ontario, Ontario Land Transfer Tax (LTT) is calculated on the purchase price (less a calculation regarding GST, if the property purchased is a newly built home). The Ontario land transfer tax is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:
| 0.5% on the first $55,000 of the purchase price, PLUS |
| 1.0% on the amount exceeding $ 55,000 up to and including $250,000, plus |
| 1.5% on the amount exceeding $250,000 up to and including $400,000, plus |
| 2.0% on the amount over $400,000 |
Example:
The Ontario land transfer tax on a property transferred for $200,000 is calculated as $275.00 on the first $ 55,000 (0.5% = $ 275.00), plus $1,450.00 on the next $145,000 (1.0% = $1,450.00), for a total of $1,725.00. |
NOTE: If you are buying new from the builder, the Ontario Land Transfer Tax is calculated on a price which is net of the GST and therefore the Ontario Land Transfer Tax will be slightly less for a new home than for a resale home with the same price.
ALSO, if you are a first time home buyer (buying a resale home or a new home from a builder), you may be eligible for a refund of Ontario Land Transfer Tax ordinarily payable.
Check out following link for additional information: Ontario Land Transfer Tax Refund Programs
http://www.rev.gov.on.ca/english/taxes/ltt/
NOTE: If the property you are buying is in Toronto (south of Steeles between the Western boundary of Etobicoke and the Eastern boundary of Scarborough) you might be required to pay a further Toronto Land Transfer Tax, see below
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