Ontario Land Transfer Tax Calculator

   

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Ontario Land Transfer Tax $

 
    Current as of January 1, 2004  

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Purchasers in Ontario should add Land Transfer Tax to their list of closing costs.
This provincial tax is imposed on property that is changing hands
and becomes the responsibility of the purchaser
when the property is registered in a land registration office.

Ontario’s multi-tiered taxation system may seem complicated.
Currently the land transfer tax is calculated as follows:

.5 per cent is charged on the first $55,000
1 per cent is charged on any amount between $55,000 - $250,000
1.5 per cent is charged on any amount between $250,000 - $400,000
2 per cent is charged on any amount over $400,000*
(*For purchases over $400,000, this extra .5% above the 1.5% is only payable
if the land is defined as single family or duplex resdidence and is not levied if the land is vacant.)


As an example, a property purchased for $275,000 in Ontario, would incur the following provincial land transfer tax:

.5 per cent is charged on the first $55,000 (.5% x $55,000 = $275)
1 per cent is charged on the amount between $55,000 - $250,000 (1% x $195,000 = $1,950)
1.5 per cent is charged on the amount between $250,000 - $400,000 (1.5% x $25,000 = $375)
The total tax bill would amount to $2,600.


Rebate
The Ontario Land Transfer Tax refund for first time home buyers of resale homes, as well as newly constructed homes, has increased from $2,000 to $4,000 as of January 1st 2017. For a first time home buyer purchasing at a price of $368,334 a total Ontario Land Transfer Tax of $.01 would be payable by the buyer. For the City of Peterborough, December 2016 MLS statistics indicate an average sale price of approximately $300,000 for single family residential property.



Eligibility of the buyer:
- must be at least 18 years old
- must be a first time home buyer and occupy the home as a principle residence no later than 9 months following the date of conveyance
- must never have owned, or had any ownership interest in, an eligible home anywhere in the world while he/she was a purchaser's spouse or same sex partner

For more information on land transfer tax rebate speak to your real estate lawyer or visit the Ontario Government website and search Tax Bulletin LTT 1-2008, June 2008.



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