All purchasers of residential property in Ontario pay the Land Transfer Tax at the time of purchasing the property. On the closing day, when the deed of the new home is transferred to your name, your Real Estate Lawyer arranges for payment of appropriate Land Transfer Taxes.
Unless exempt under the Act, the Land Transfer tax is payable on all unregistered dispositions of beneficial interests in land including every conveyance of land presented for registration. Land includes buildings, lands, structures under construction, fully constructed structures, fixtures and any interest in them.
To calculate Land Transfer tax, the value of consideration includes the purchase price, all outstanding liabilities, benefits conferred and all cost of upgrades. To know more about the Land Transfer Tax for Ontario, click here.