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Ontario Land Transfer Tax
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When you purchase a property in the Province of Ontario, you are required to pay Ontario Land Transfer Tax. However, if you are a first time buyer you may be eligible for an Ontario Land Transfer Tax Rebate. Click Here for details of the Ontario Land Transfer Tax Rebate Program.
(When you purchase a home in the City of Toronto (Etobicoke, East York, North York, York, Scarborough, Toronto), you are required to pay an additional Toronto Land Transfer Tax. See the Section below for details).
Ontario Land Transfer Tax is calculated as follows:
- Amounts up to and including $55,000 - 0.5%
- Amounts exceeding $55,000 up to/including $250,000 - 1%
- Amounts from $250,000 to $400,000 - 1.5%
- Amounts in excess of $400,000 - 2.0%
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Toronto Land Transfer Tax
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Toronto's Land Transfer Tax Details
On October 23, 2007, Toronto City Council approved a second, municipal, land transfer tax that will be levied on top of the Provincial land transfer tax for any sale of real estate in the City of Toronto (Etobicoke, East York, North York, York, Scarborough, Toronto). The Tax is calculated at the following rates:
Ontario Land Transfer Tax:
- 0.5% of the amount of the purchase price up to and including $55,000
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1% of the amount of the purchase price between $55,000 and $400,000
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2% of the amount of the purchase price above $400,000
Toronto Land Transfer Tax:
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0.5% of the amount of the purchase price up to and including $55,000
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1% of the amount of the purchase price between $55,000 and $400,000
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1.5% of the amount between $400,000 and $40 million
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1% of the amount above $40 million
Where does this apply?
The Toronto land transfer tax only applies to real estate transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto. (Not applicable in Peel Region, Halton Region, Hamilton Wentworth Region, Durham Region, York Region or any other location in the Greater Toronto Area or Province of Ontario).
Are first time home buyers affected?
First time home buyers of new AND re-sale homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000). For clarification on how rebates will be administered check with your lawyer. However, according to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes:
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First-time home buyers where the total Toronto land transfer tax is $3,725 or less ($3,725 is the amount of TLTT payable on a home purchased for $400,000). First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City.
Complete details of the Toronto land transfer tax are available here or by calling the City of Toronto at 416-338-0338. |
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Land Transfer Tax Calculators
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To determine what your Land Transfer Tax amount will be, use these convenient calculators:
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