Land Transfer Tax

Land Transfer TaxWhat is Land Transfer Tax

The Ontario Land Transfer Tax is tax is paid by the Purchaser at the date of final closing as part of your closing costs. The purchaser’s solicitor pays the Tax on behalf of the purchaser on the closing date. The purchaser will be required to provide their solicitor closing funds (certified) that will cover the closing expenses. This Tax is not covered through your mortgage.

The Toronto Land Transfer Tax applies when you purchase a home within the city limits of Toronto, Ontario. You should note that if the property is within the Toronto city limits then both the Provincial and Municipal tax is applicable and is also part of your closing costs.

Rates for a single-family residence in Ontario are as follows:

 

$0 – $55,000.00 ½ of 1%
$55,000.00 – $250,000.00 1%
$250,000.00 – $400,000.00 1 ½%
Over $400,000.00 2%

 

Rates for a single-family residence in Toronto (in addition to the Ontario rates) are as follows:

 

$0 – $55,000.00 0.5%
$55,000.00 – $400,000.00 1%
Over $400,000.00 2%

 

Feel Free to calculate the Land Transfer Tax for your property with the calculator below.

 

Note:  If you are buying new, from the builder, the Tax is calculated on a price which is the net of HST, and will be slightly less for a new home than for a resale home with the same price.

What are the Exemptions from Land Transfer Tax? 

Exemptions are limited. They include:

  • certain transfers between spouses
  • certain transfers from an individual to their family business corporation
  • certain transfers of farmed land between family members
  • certain transfers of a life lease from a non-profit organization or a charity.

First time Home Buyers may be eligible for a Land Transfer Tax Refund.  Click Here for more information about whether you qualify. 

Contact your local real estate legal professional at Frost Law, Professional Corporation to discuss whether you may be eligible for the First Time Home Buyer’s Rebate. 

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