Land Transfer Tax Ontario

Purchasers in Ontario add Land Transfer Taxes to their list of closing costs. Land transfer taxes are levied on properties that are changing hands, are the responsibility of the purchaser.

LAND TRANSFER TAX CALCULATOR

ONTARIO'S LAND TRANSFER TAX:

Up to $55,000 X 0.5 % of total property value
From $55,000 to $250,000 X 1 % of total property value, less $275
From $250,000 to $400,000 X 1.5 % of total property value, less $1525
From $400,000 up X 2 % of total property value, less $ 3525

ADDITIONAL NEW TORONTO'S LAND TRANSFER TAX:

Toronto home buyers will pay additional new tax rates:
0.5% on first $55,000,
1% on next $345,000, and
2% on portion over $400,000

Exemption: First time buyer do not pay the new tax on the first $400,000 of a property purchase. More about Toronto's new land transfer tax

LAND TRANSFER TAX REBATE

Land transfer Tax rebate is a permanent program allowing a rebate of provincial land transfer tax otherwise payable up to $2000 for all agreement of purchase and sale entered into after March 31, 1999 (being the land transfer tax on a $227,500 home, using above calculation). As of Dec 14, 2007, resale home buyers are eligible for Ontario's New Land Transfer Tax Rebate

ELIGIBILITY OF THE BUYER:

• must be at least 18 years old
• must be first time home buyer and occupy the home as a principle residence no later than 9 months after the date of the 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 

ELIGIBILITY OF THE PROPERTY

• must be newly constructed home
• builder must be registered by TARION warranty corporation

RESTRICTIONS ON AMOUNT CLAIMED:

• between non-spouses: refund is reduced for the proportionate interest of the co-owner who is not eligible
• between spouses: If one spouse is first time home buyer and the other owned a home before, but not since becoming a spouse of the first time home buyer, then the spouse who is the first time home buyer would claim the whole rebate

OTHER CONDITIONS

• Rebate received on day of registration at land registry office
• 18 month deadline (from the date that the conveyance is registered) if applying for refund directly from Land Transfer Tax office. Qualifying tax payer or their solicitors may claim an immediate refund at the time of registration.

For more information on land transfer tax rebate speak to your real estate lawyer or visit Revenue Canada's website.