An Easy Calculation of Land Transfer Tax in Toronto and Ontario

Confused about Land Transfer Tax jargon, how much and when you need to pay it? Want to know about rebates? 

Here is a basic explanation of Land Transfer Tax to help you to be aware of closing costs. Buying a property in Toronto means that you must pay both the Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. This tax is payable at the time the land is transferred, or at the closing of the sale.

A quick Land Transfer tax calculation can be done here.

Calculating Ontario Land Transfer Tax Payable

0.5% of the amount between $0 and $55,000

1.0% of the amount between $55,000.01 and $250,000

1.5% of the amount between $250,000.01 and $400,000

2.0% of the amount exceeding $400,000 where the land contains one or two single family residences

Calculating Toronto Land Transfer Tax Payable

 0.5% of the amount between $0 and $55,000

1.0% of the amount between $55,000.01 and $400,000

2.0% of the amount exceeding $400,000

Rebates

First-time home buyers can qualify for a refund on this tax for both provincial and municipal land transfers, subject to certain conditions:

Provincial

  • The buyer cannot have owned or had an ownership interest in a home in the past, in any country
  • The buyer's legal spouse cannot have owned or had an ownership interest in a home in the past, in any country, while being the buyer's spouse
  • The buyer must be 18 years old at minimum
  • The buyer must request the refund within 18 months after the transfer of land
  • The buyer must live in the home as a principal residence no later than 9 months after the transfer of land
  • The buyer cannot have acquired a refund under the Ontario Home Ownership Savings Plan in the past
  • If the home is purchased prior to December 14, 2007, it must be a new home to qualify for the refund

Municipal

  • The buyer may qualify for a refund on the purchase of a new or resale home, for a maximum of $3725.00

You can avoid paying the municipal tax altogether by buying your next home just outside of the Toronto city limits.

Give Beata Kosc a call at 416-570-1094 or email beatakosc@rogers.com  to find your home in the Davisville, Leaside, North York, York Mills, Willowdale, or Lansing areas.