LAND TRANSFER TAX
When you buy property or an interest in property in Ontario, you are required to pay Land TransferTax. Land transfer tax is normally based on the amount paid for the Property, i.e. the purchase price in the agreement of purchase and sale (not including any GST).
All Purchasers buying property within Ontario in required to pay the Ontario Land Transfer Tax.
If you purchased property in Toronto, you are required to pay both the
Ontario Land Transfer Tax ("LTT") and the
Municipal Land Transfer Tax ("MLTT").
The Municipal Land Transfer Tax ("MLTT") became effective February 1, 2008 and applies only to purchases of properties in the City of Toronto in addition to the Province's Land Transfer Tax ("LTT"). If your Agreement of Purchase and Sale was signed by you on or before December 31, 2007 you may be eligible for a full rebate.
You may be entitled to a refund of the Land Transfer Tax if you are a First Time Home-Buyer.
Ontario Land Transfer Tax ("LTT") - Tax Rates
The Ontario LTT will be charged on a graduated basis depending on the value of consideration paid for a property situate in the Province of Ontario using the following formula:
|
Purchase Price |
Tax Calculation |
Maximum Tax payable |
|
Up to $55,000 |
$Purchase Price x 0.05% |
$275.00 |
|
$55,001 to $250,000 |
$Purchase Price x 1.0% less $275.00 |
$2,225.00 |
|
$250,001 to $400,000 |
$Purchase Price x 1.5% less $1525.00 |
$4,475.00 |
|
$400,001 or more |
$Purchase Price x 2.0% less $ |
Municipal Land Transfer Tax (MLTT) - Tax Rates
The MLTT will be charged on a graduated basis depending on the value of consideration paid for any property situate only in the City of Toronto using the following formula:
|
Purchase Price |
Tax Calculation |
Maximum Tax payable |
|
Up to $55,000 |
$Purchase Price x 0.05% |
$275.00 |
|
$55,001.00 to $400,000 |
$Purchase Price x 1.0% less $275.00 |
$2,225.00 |
|
$400,001 or more |
$Purchase Price x 2.0% less $2,225.00 |
$ |
FOR EXAMPLE: The calculation of the applicable Land Transfer Tax for a home with a purchase price of $305,000.00 (excluding GST) would be as follows:
Calculation Total Tax
LTT $305,000 x 1.5% less $1,525.00 $3,050.00
PLUS (if the property is situate in Toronto)
MLTT $305,000 x 1.00% less $275.00 $2,775.00
