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.
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:
- Land Transfer Tax Refund for Ontario
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:
- Land Transfer Tax: City of Toronto