Land Transfer Tax
Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home. All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead levy a much smaller transfer fee. In most provinces the tax is calculated as a percentage of property value, using asking price as a close estimate. Homebuyers in Toronto, however, also incur an additional municipal tax.
To help offset the unwelcome cost, Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first-time homebuyers.
How to calculate land transfer taxLand transfer taxes are calculated based on the purchase price of your property. Each province sets its own land transfer tax rates, and there are also special rules when buying real estate in Toronto and Montreal. Use the calculator above to find the land transfer tax based on your location, or keep reading to find out how land transfer tax is calculated where you live.
Ontario Land Transfer TaxOntario land transfer tax rates were last updated on January 1, 2017. This change introduced the top, $2 million tax bracket, but left the marginal rates and cutoffs for the lowest four price brackets unchanged. A non-resident speculation tax of 15% was also added for the entire Greater Golden Horseshoe.
Purchase Price of Home
$55,000.01 to $250,000.00
$250,000.01 to $400,000.00
$400,000.01 to $2,000,000.00
Marginal Tax Rate
Ontario first-time homebuyer land transfer tax refund
The Ontario land transfer tax refund is equal to the full value of the land transfer tax up to a maximum of $4,000
- The buyer must be a Canadian citizen or permanent resident of Canada
- The buyer must be older than 18 years
- The buyer must occupy the home within nine months of purchase
- The buyer cannot have owned a home anywhere in the world
- The buyer’s spouse cannot have owned a home while being your spouse
Based on Ontario land transfer tax rates, the refund will cover the fully taxed amount on houses up to $368,333. For houses over $368,333, homebuyers will receive the maximum $4,000 refund and have to pay the remaining LTT balance. To obtain this refund, you need to apply within 18 months after the purchase of the home.
- 119 Westcreek Dr., Suite 3 Vaughan ON L4L 9N6
- (437) 688-9159