Ontario Land Transfer Tax
What is the Ontario Land Transfer Tax?
If you live in Ontario and purchase a home you need to pay a provincial Land Transfer Tax(LTT).
The amount for the Land Transfer Tax will vary depending on the purchase price of your home and if you’re located in Toronto you’ll have to pay an additional municipal tax added onto the Ontario Land Transfer Tax amount.
There is a Land Transfer Tax Rebate available for first-time homebuyers to a maximum of $2000(or $3,725 in Toronto). Click here to learn about the Ontario First-Time Home Buyer Land Transfer Tax Rebate.
The rebate applies to new and re-sale homes, and in order to be eligible for the Land Transfer Tax Rebate you will need to apply for it within 18 months of purchasing the home.
The Land Transfer Tax is the responsibility of the purchaser, and can range from 0.5% to 2.5% of the total value of the property depending on where you live.
If you buy a property in Ontario, there is a multi-tiered taxation system. Let’s break down what that looks like:
- 5% is charged on the first $55,000
- 1% is charged on $55,000-$250,000
- 5% is charged on $250,000-$400,000
- 2% is charged on $400,000-$2,000,000
- 5% is charged on amounts in excess of $2,000,000
Use the calculator below to get started. To find out the actual amount of Land Transfer tax you would be required to pay you can ask your real estate agent, a banker or a lawyer.
Effective April 21, 2017, a 15% Non-Resident Speculation Tax is imposed on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) or taxable trustees. This new tax is in addition to Ontario’s current Land Transfer Tax.