ONTARIO GOVERNMENT LAND TRANSFER TAX COSTS
(Revised April 21, 2017)
On transfers of residential real property (with one or two kitchens) in Ontario, Ontario Land Transfer Tax (LTT) is calculated on the purchase price (less a calculation regarding HST, 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. up to $2,000,000 plus
2.5% on the amount over $2,000,000 (as of January 1, 2017).
[Be aware that for non-residential properties, such as industrial or commercial real estate or for multi-unit residential properties (3 or more kitchens) other Ontario LTT revisions and increases will be effective January 1, 2017].
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 with one or two kitchens. Please note that this calculation is based on a resale property and not on a newly constructed home which typically includes HST 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 HST 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:
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:
ALSO BE AWARE that Ontario (for properties in and around Toronto) now charges (for Purchase Agreements accepted after April 20, 2017) an added 15% tax based on the purchase price if any one of the buyers is a FOREIGN NATIONAL (not a Canadian Citizen or a Permanent Resident of Canada), UNLESS only two people buy jointly and are spouses or common law spouses and one is a FOREIGN NATIONAL.
Note: If within four years of closing, a Foreign National becomes a Canadian Citizen or Permanent Resident, one can apply for a refund of the 15% tax if one qualifies.