Do you want content like this delivered to your inbox?
Share
Share

Toronto and Ontario Land Transfer Tax

Jethro Seymour

Sell your home faster and for more money with the Seymour Real Estate Team.  I started my sales career in 1994 with publishing and media sales...

Sell your home faster and for more money with the Seymour Real Estate Team.  I started my sales career in 1994 with publishing and media sales...

Feb 9 2 minutes read

Land Transfer Tax is a significant closing cost you will have to take into consideration when buying a new home.

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. If you purchase a property for $260,000 in Ontario, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 – $250,000, while the $250,000 – $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.

The following illustrates Toronto and Ontario Land Transfer Tax rates

ONTARIO

Land Transfer Tax 
Up to $55,000 X .50 % of total property value
From $55,001 to $250,000 X 1 % of total property value
From $250,001 to $400,000 X 1.5 % of total property value
From $400,001 up X 2 % of total property value

TORONTO

Land Transfer Tax
Up to $55,000 X .50 % of total property value
From $55,001 to $400,000 X 1 % of total property value
From $400,001 up X 2 % of total property value

Toronto residents are required to pay both taxes in a real estate transaction.



We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info