land transfer tax

“Good fortune is what happens when opportunity meets with planning” – Thomas Edison

When you plan your budget for buying a home, you need to account for the Land Transfer Tax that you’ll have to pay when you purchase a new home in Canada (except in Alberta and Saskatchewan). Since in most provinces it is calculated as a percentage of property value, it is best to be prepared and know in advance how much tax you will pay.

Home-buyers in Ontario are required to pay a Provincial Land Transfer Tax. The tax, which is based on the purchase price, is calculated as follows:

  • amounts up to and including $55,000: 0.5%
  • amounts exceeding $55,000, up to and including $250,000: 1.0%
  • amounts exceeding $250,000, up to and including $400,000: 1.5%
  • amounts exceeding $400,000: 2.0%
  • amounts exceeding $2,000,000, where the land contains 1 or 2 single family residences: 2.5%.

There are many online Land Transfer tax calculators that can be used to determine the total tax you’ll pay for a given amount.

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If purchasing a property in Toronto, you are required to pay an additional Municipal Land Transfer Tax.

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First time home-buyers might be eligible for a refund on all or part of the Land Transfer Tax:

  • Municipal Land Transfer Tax refund for first time buyers: Maximum $3725
  • Provincial Land Transfer Tax refund for first time buyers: Maximum $2000

To learn more you can visit :

https://www.ontario.ca/document/land-transfer-tax