Land Transfer Tax is a significant closing cost you will have to take into consideration when buying a new home.
Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.
Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for $260,000 in Ontario, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 – $250,000, while the $250,000 – $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.
Use our calculator to get quick the quick answers you are looking for ( go to calculator )
The following chart illustrates Toronto and Ontario Land Transfer Tax rates
ONTARIO
Land Transfer Tax ( go to calculator )
Up to $55,000 X .50 % of total property value
From $55,001 to $250,000 X 1 % of total property value
From $250,001 to $400,000 X 1.5 % of total property value
From $400,001 up X 2 % of total property value
TORONTO
Land Transfer Tax ( go to calculator )
Up to $55,000 X .50 % of total property value
From $55,001 to $400,000 X 1 % of total property value
From $400,001 up X 2 % of total property value
Toronto residents are required to pay both taxes in a real estate transaction.
