Land Transfer Tax Calculator

PROVINCIAL LAND TRANSFER TAX

Purchasers of real estate in Ontario are required to pay provincial Land Transfer Tax
 on the date of final closing. It is paid directly to the Province of Ontario. It is based on the following
 formula:

The tax rate has not changed since June 1st, 1989

$0 – $55,000                                    0.5% (.5% of $55,000 is $275)

$55,001 – $250,000                         1.0% less $275

$250,001 – $400,000                       1.5% less $1,525

$400,001 and up                              2.0% less $3,525

Example: To calculate the Land Transfer Tax on a purchase price of $275,000 multiply the purchase price by 1.5% and deduct $1,525

($4,125 – $1,525 = $2,600)

In short $4,475 in provincial Land Transfer tax is owed on the first $400,000 with 2% 
payable on any value in excess of that amount.

FIRST-TIME Buyers of both new and resale homes are eligible for a rebate of the Provincial Land Transfer Tax of up to $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund

For further information, please go to:

http://www.rev.gov.on.ca/en/refund/newhome/index.html

TORONTO LAND TRANSFER TAX

This is paid by the Buyer at the date of final closing to the City of Toronto. The tax is based on the purchase price and the current rates became effective on February 1, 2008.

$0 – $55,000                                     0.5% (.5% of $55,000 is $275)

$55,001 – $400,000                          1.0% less $275

$400,001 and up                               2.0% less $2,900

FIRST-TIME Buyers of both new and resale homes will receive a rebate of the Toronto Land Transfer Tax of up to $3,725. This is equivalent to a 100% rebate on homes purchased for up to $400,000.

For further information, please go to:

http://www.toronto.ca/taxes/mltt.htm