Land Transfer Tax in Ontario
In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of Ontario's land registry office.
Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.


 
How do I calculate land transfer tax?
The tax rates on the value of the consideration are:

Percentage

 
Explanation
0.5%
amounts up to and including $55,000
1.0%
amounts exceeding $55,000 up to and including $250,000
1.5%
amounts exceeding $250,000
2.0%
amounts exceeding $400,000 where the land contains one or two single family residences

 

For a quick calculation of land transfer tax refer to the following list. Residential property refers to land containing one or two single family residences as defined by the Land Transfer Act. Value of the Consideration for a conveyance or disposition is shown as 'VC'. Land transfer tax payable is shown as 'LTT'.

For the Value of the Consideration:

 
Formula
up to and including $55,000
LTT = VC × 0.005
exceeding $55,000 and up to $250,000
LTT = (VC × 0.01) - $275
exceeding $250,000, for property other than residential
LTT = (VC × 0.015) - $1525
exceeding $250,000 up to $400,000, for residential property
LTT = (VC × 0.015) - $1525
for residential property exceeding $400,000
LTT = (VC × 0.02) - $3525

 

 
Ontario Land Transfer Breaks for First Time Buyers

First time purchasers may be entitled to a refund of Ontario’s land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration. If not, the refund may be claimed directly from the Ministry of Revenue.
 
 
*** As a First Time Home Buyer you may be entitled to savings and rebates under different Government Programs. Contact metoday for more information. ***