What is the Land Transfer Tax

When you purchase a property, whether it be a house, condo or even land, the province of Ontario assess a fee or land transfer tax when you take possession of the property and the transaction closes.  The land transfer tax is based on final purchase price that you have agreed to and payable to your lawyer, who will remit the tax on your behalf. In Ontario there are two types of land transfer tax that will be applied to your purchase, depending on the location of the property.  

The fist land transfer tax applies to all properties purchased in the province of Ontario and the second tax is an additional property tax if the property is purchased in the City of Toronto.  That's right, in addition!  If you purchase a property in the City of Toronto, you are subject to 2 property tax, while properties purchase outside the City of Toronto but within Ontario are subject to only ONE!

Ontario Land Transfer Tax

 The Ontario land transfer tax (LTT) is a marginal tax and each portion of your home’s value is taxed at a unique rate. These tax rates are as follows:

Purchase Price of HomeOntario Land Transfer Tax Rate
First $55,000 0.5%
On $55,000 to $250,000 1.0%
On $250,001 to $400,000 1.5%
Over $400,001 2.0%

 

If you are buying a property in Ontario that does not reside in the City of Toronto, only the Ontario Land Transfer Tax applies. 

 For more information on the Ontario Land Transfer Tax please visit:

Toronto Land Transfer Tax

The Toronto Land Transfer Tax will be charged on a graduated basis depending on the value of consideration paid for the property. For property containing at least one, and not more than two, single family residences with a consideration value of:

Purchase Price of HomeToronto Land Transfer Tax Rate (MLTT)
Up to  $55,000.00 0.5%
$55,000.01 to $400,000.00 1.0%
Over $400,000.00 2.0%

If you are purchasing a property that resides in the City of Toronto, the municipal land transfer tax (MLTT) or Toronto Land Transfer Tax will applied to the purchase in addition to the Ontario LLT.  For more information on the Toronto Land Transfer Tax please visit:

 

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