Residential Land Transfer Tax Calculator
Land Transfer Tax FAQ
In most cases, buyers must pay a land transfer tax when acquiring real estate in Ontario and most parts of Canada, such as a piece of land, house, townhome, or condominium. This tax is levied by local governing bodies each time property ownership is transferred from one party to another. For those properties located within the City of Toronto, there is an additional municipal land transfer tax levied by the City of Toronto.
It’s important to note that land transfer taxes or fees are the responsibility of the property buyer, not the seller. Typically, the tax payment becomes due upon the completion of the property sale when the official registered ownership of the property changes.
How is the Municipal Land Transfer Tax or Fee calculated?
Ontario charges a sliding scale Land Transfer Tax based on the value of the property. The Land Transfer Calculator automatically provides an estimate based on the following calculation:
5% on the value up to and including $55,000
1% of the value above $55,000 and up to and including $250,000
5% of the value above $250,000 and up to and including $400,000
2% of the value above $400,000 and up to and including $2,000,000
5% of the value that exceeds $2,000,000
An additional tax amount is added if you’re buying a property in the City of Toronto. It’s also calculated on a sliding scale and is based on the property’s value:
5% on the value up to and including $55,000
1% of the value over $55,000 and up to and including $250,000
5% of the value over $250,000 and up to and including $400,000
2% of the value over $400,000
Is there a first-time homebuyer rebate?
In Ontario, first-time homebuyers may be eligible to receive up to $4,000 in rebates. If the home is being purchased in the City of Toronto, first-time buyers may be eligible to receive up to $8,475 in land transfer tax rebates.
Are there any other taxes applicable to the sale of property?
Ontario non-resident speculation tax.
If you are a non-resident of Ontario, you may also be charged an additional 15% speculation tax on all property purchases within the Greater Golden Horseshoe Region (GGH). The GGH includes the entire Greater Toronto Area, stretching to Peterborough and Northumberland in the east, Wellington and Branford in the west and extending to the Canadian-American border at Niagara in the south.
This tax was introduced by the government in 2017 in an effort to reduce and discourage speculative investing by foreign citizens.
RESIDENTIAL Property Land Transfer Tax Calculator
We encourage and recommend users to consult with applicable government agencies, a licensed Realtor and a real estate lawyer for further information concerning land transfer tax information. DISCLAIMER: lindacordiano.ca, its realtors, and all Royal LePage Elite Realtors and its employees accept no responsibility for any loss arising from any use or reliance on the information contained or produced through calculative function herein.