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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.(Be
aware that for non-residential properties, such as industrial or
commercial real estate, there is no 2% charge since the tax rate
is 1.5% for any amount of purchase price over $250,000 regardless
of the total price.) |
| 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. |
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CALCULATE YOUR ONTARIO LAND TRANSFER
TAX: (based on purchase price of a resale residential home. Please
note that this calculation is based on a resale property and not
on a newly constructed home which typically includes GST in the
price; see the notes below if you are buying from a builder.)
NOTE:
If you are buying new from the builder, the Ontario Land Transfer Tax
is calculated on a price which is net of 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 purchaser (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 Ontario
Land Transfer Tax Refund Programs:
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. Checkout the following link for Toronto Land Transfer Tax:
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Stephen H. Shub Professional Corporation
Barrister, Solicitor, Notary
(Head Office) 5799 Yonge St. #803, Toronto, Ontario Canada
M2M 3V3
Tel: (416) 222-1882 • Fax: (416) 222-4277 • Cell: (416)
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