Land Transfer Tax is payable on closing in Ontario, and is calculated based on purchase price. Toronto area buyers pay both a provincial LTT and a municipal one.

Exemptions from paying land transfer taxes may apply in the following cases:

• A purchase by a first time buyer (up to a capped maximum)
• A transfer between spouses
• A transfer between other family members
• A sale or transfer involving related corporation, or employer/employee relationships

A qualifying first time buyer will pay no LTT on the first $368,000. ($4000 max rebate)

You can figure out how much Land Transfer Tax you will pay, if you want to.  Here are the rules:

1. First $55,000 x .5%
2. $55,000.01 to $250,000 x 1%
3. $250,000.01 to $400,000 x 1.5%
4. $400,000.01 to $2,000,000 x 2%
5. Over $2,000,000.00 x 2.5%

Using the chart, this is how we would calculate a home purchase of $500,000.

1. First $55,000 x .5% = $275.00
2. $55,000.01- $250,000 ($195,000) x 1% = $1950.00
3. $250,000.01 – $400,000 ($150,000) x 1.5% = $2250.00
4. $400,000.01 – $500,000 ($100,000) x 2% = $2000.00

Total Land Transfer Tax = $275 + $1,950 + $2,250 + $2,000

= $6,475.00

 

Or you can let our handy calculator do the work for you!