Ontario Land Transfer Tax Calculation

 

When we buy land or an interest in land in the Province of Ontario, we are required to pay Land Transfer Tax at the time the transfer is registered. The payment is usually handled by our lawyer as one of the closing costs.

 

Land Transfer Tax is calculated as follows:

• 0.5% of the value of consideration for the transfer up to and including $55,000,
• 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
• 1.5% of the value of the consideration which exceeds $250,000, and
• 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

First-time homebuyers may be eligible for a refund of all or part of the tax.  To see if you qualify, here's the link to the Ontario Ministry of Revenue.

If you have any questions about Land Transfer Tax or buying real estate, please let me know.  budloughlin@royallepage.ca