Ontario Land Transfer Tax - Plus Rebate Information:
Related Links: Land Transfer Calculator: Closing Cost Quote:
Ontario Land Transfer Tax
Any person who buys real estate in Ontario must pay Ontario's land transfer tax. Real Estate includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinets). Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land. In some cases, land transfer tax is based on the fair market value of the land, for example, where a lease can exceed 50 years; land is transferred from a corporation to one of its shareholders; or land is transferred to a corporation, if shares of the corporation are issued.
Tax Rate Calculation:
The formula used in calculating the amount of Land Transfer Tax payable is as follows:
0.05% of the value purchase price up to and including $55,000.00, 1% of the value of the purchase price which exceeds $55,000.00 up to and including $250,000.00 and 1.5% of the purchase price which exceeds $250,000.00 and 2% of the amount by which the value of the consideration exceeds $400,000.00 for land that contains at least one and not more than two single family residences.
Toronto Land Transfer Tax - Plus Rebate Information
Toronto Land Transfer Tax:
If you buy a house in the city of Toronto you may be liable to pay Land Transfer Tax under the new tax system. This new tax is a result of a tax measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province's Land Transfer Tax. The MLTT will be charged on a graduated basis depending on the purchase price of the property. For property containing at least one, and not more than two, single family residences with a consideration value of:
Value of Consideration |
MLTT Rate |
Up to and including $55,000.00 |
0.5% plus |
$55,000.01 to $400,000.00 |
1.0% plus |
Over $400,000.00 |
2.0% |
For all other property with a consideration value:
Value of Consideration |
MLTT Rate |
Up to and including $55,000.00 |
0.5% plus |
$55,000.01 to $400,000.00 |
1.0% plus |
$400,000.01 to $40,000,000.00 |
1.5% plus |
Over $40,000,000.00 |
1.0% |
FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):
MLTT Rate |
Calculation |
0 to $55,000.00 |
55,000.00 x 0.005 = $275.00 |
$55,000.01 to $400,000.00 |
$344,999.99 x 0.01= $3,450.00 |
$400,000.01 to $500,000.00 |
$99,999.99 x 0.02= $2,000.00 |
Total MLTT= $5,725.00 |
|
Tax Rate Calculation:
You may be eligible. The formula used in calculating the amount of Land Transfer Tax under the following conditions:
If you signed your Agreement of Purchase and Sale was executed on or before December 2007 and the closing date is on or after February on or before February 1, 2008. In this case you will be eligible for a full rebate.
First-Time Purchaser:
You are a first-time purchaser of a newly constructed or re-sale residential property. The rebate for first time home purchasers is up to a maximum of $3,725.00.
