Ontario Land Transfer Tax

When you acquire land in Ontario, either by Purchase or Benefit, tax may be payable to the province.
We’ve compiled this useful guide to help you navigate this complicated topic.

About Ontario Land Transfer Tax

When you purchase property, or acquire it through beneficial interest (such as through an estate), tax may be payable on the conveyance of that property to you. Generally, this tax is calculated based upon the purchase price of the land. However, in some situations where a purchase price is not directly used, the market value of the land may be required to be obtained, and used for taxation purposes.

However, not every transaction is subject to the same rates of tax. In scenarios where the purchaser is a non-resident, a speculation tax may apply. First time homebuyers and purchasers of new construction homes may also be eligible for certain refunds on the tax paid. This resource is meant to be used as a general guideline only. Appropriate Legal council should be obtained to determine the exact amount of tax or refunds payable.

Standard Land Transfer Tax Rates in Ontario – Updated January 2017

The following rates apply to all properties conveyed on or after January 1, 2017.

Purchase Price (or Market Value) of Property Tax Rate
Up to and Including $55,000 0.5%
$55,000.01 – $250,000 1%
$250,000.01 – $400,000 1.5%
Above $400,000 2%
Above $2,000,000 containing 2 or more Single Family Dwellings 2.5%

Other Taxes

In addition to Ontario Land Transfer Tax, other taxes may be still payable. The following list provides some examples of taxes that may be payable in the transaction. It is best to consult legal council before purchasing to discuss which taxes may apply.

Non-Resident Speculation Tax

The Ontario Government has imposed a 15% non-resident speculation tax on property located within the Greater Golden Horseshoe Region by non-permanent residents and foreign corporations. More information regarding the Non-Resident Speculation Tax can be found on the Ministry of Finance Website.

Municipal Land Transfer Tax

Certain Municipalities may impose their own taxes on property conveyed within their limits. For example, the City of Toronto imposes a Toronto Land Transfer Tax. More information regarding this tax can be found on the City of Toronto Website.

Municipal Land Transfer Tax Rates up to 2 Single Family Dwellings

Value of Property Tax Rate
Up to $55,000 0.5%
$55,000.01 – $250,000 1%
$250,000.01 – $400,000 1.5%
$400,000.01 – $2,000,000 2%
Over $2,000,000 2.5%

Municipal Land Transfer Tax Rates More than 2 Single Family Dwellings

Value of Property Tax Rate
Up to $55,000 0.5%
$55,000.01 – $250,000 1%
$250,000.01 – $400,000 1.5%
Over $400,000 2%

Harmonized Sales Tax (HST)

Harmonized Sales Tax applies to the purchase of new construction homes. It may also apply to homes that have been deemed “Substantially Renovated”. If you’re a buyer of a new home in Ontario, you may be eligible to receive a rebate of the provincial portion of the HST (8%, up to $24,000). More information regarding eligibility of this rebate and details on application can be found on the Canada Revenue Agency website.

Tax Rebates

Certain purchasers may be eligible for a full or partial refund of taxes payable on the purchase of a transaction. In addition, there are several government-funded programs to promote home ownership in canada. We invite you to explore the list of these on our blog.

Land Transfer Tax Calculator

ReaLawState’s free LTT Calculator can assist you with determining the amount of tax that might be payable on the purchase of your property.

NOT WHAT YOU WERE LOOKING FOR? KEEP SEARCHING.

WHAT IS REALAWSTATE

We are a Toronto Real Estate Brokerage founded by Practicing Lawyers.

We pair market-savvy agents with experienced lawyers from the beginning. The legal fees for services are included in commissions, at no extra cost to you.

We become one team with one goal, all paid for by the commission.

RECENT POSTS