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Land Transfer Tax

Purchasers in most large Canadian centers can add Land Transfer Taxes to their list of closing costs.

Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.

Many provinces have multi-tiered taxation systems that can prove complicated.

 

 ONTARIO

 

The following chart illustrates the Provincial Land Transfer Tax:

 

 .5 per cent is charged on the first $55,000

1 per cent is charged on $55,000 - $250,000

1.5 per cent  is charged on $250,000 - $400,000 

2.0 per cent is charged on anything over $400,000.00  

 

FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):

 

0 to $55,000.00 55,000.00 x 0.005 =                              $275.00
$55,000.01 to $250,000.00   $195,000.00 x 0.10 =    $1950.00
$250,000.00 to $400,000.00 $150,000.00 x 0.1.5=    $2250.00

$400,000.00 to $500,000.00 $100,000.00 x 0.20 =    $2000.00

 

Total MLTT= $6,475

 

 

TORONTO

 

As a taxation 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.

 

 .5 per cent is charged on the first -$55,000

1 per cent is charged on $55,000 - $250,000

2.0 per cent is charged on anything over $400,000.00 

 

1.5 per cent for properties with two or more living units between $400,000.00-$40,000.000.00 

 

FOR EXAMPLE: A home with a consideration value of $500,000.00 (excluding GST):

 

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

 

REBATE OPPORTUNITIES:

You may be eligible for a rebate of the MLTT if either of the following criteria is met:

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.

If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview version 6.0 software when he/she registers your transfer/deed.

 

  

 

 

Carol Borg
carol@carolborg.com

iPro Realty Ltd.
Brokerage

304 Danforth Ave unit C, Toronto, ON M4K 1N6

Phone: 416-364-2036  Fax: 416-422-4192  Mobile: 416-566-5986
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