LAND TRANSFER TAX
Purchasers of real estate in Ontario are subject to a Provincial Land Transfer Tax.
The amount of tax is a function of the price and use of the property.
ONTARIO LAND TRANSFER TAX
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| On $55,000 to $250,000 | 1.0% |
| On $250,000 to $400,000 | 1.5% |
| On $400,000 to $200,000,000 | 2.0% |
| Over $200,000,000 | 2.5% |
ONTARIO FIRST-TIME HOME BUYER LAND TRANSFER TAX REBATE
The Ontario land transfer tax rebate is equal to the full value of the land transfer tax up to a maximum of $4,000.
Eligibility
The buyer must be older than 18 years
The buyer must occupy the home within nine months of purchase
The buyer cannot have owned a home anywhere in the world
The buyer's spouse cannot have owned a home while being your spouse
If you are purchasing a new home, it must be eligible for home warranty
Based on Ontario land transfer tax rates, the rebate will cover the fully taxed amount on houses up to $368,300. For houses over $368,300, home buyers will receive the maximum $4,000 rebate. To obtain this refund, you need to apply within 18 months after the purchase of the home. MKC Law Office can help you receive credit for this rebate when the deal closes.
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OTHER EXEMPTIONS AND DEFERRALS
If you are purchasing farmland you may be eligible for an exemption from the Land Transfer Tax. If you are purchasing land with a corporation you may be eligible for a deferral or an exemption from the Land Transfer Tax. The eligibility requirements for these exemptions are very precise, so please contact our offices to determine if they apply to you.
TORONTO LAND TRANSFER TAX
If purchasing a home in Toronto, there is an additional municipal land transfer tax. Toronto's land transfer tax applies within the following boundaries: Steeles Avenue as the North border, Etobicoke as the West border, Scarborough as the East border, and Lake Ontario as the South border.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| On $55,000 to $400,000 | 1.0% |
| Over $400,000 | 2.0% |
TORONTO FIRST-TIME HOME BUYER LAND TRANSFER TAX REBATE
First-time home buyers in Toronto of new and resale homes are eligible to receive a refund up to a maximum of $3,725. There is also a $75.00 processing fee charged by the City of Toronto.
Eligibility
The buyer must be older than 18 years
The buyer must occupy the home within nine months of purchase
The buyer cannot have owned a home anywhere in the world
The buyer's spouse cannot have owned a home while being your spouse
If you are purchasing a new home, it must be eligible for home warranty
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Land Transfer Tax Calculator
Purchasers of real estate in Ontario are subject to a Provincial Land Transfer Tax.
The amount of tax is a function of how expensive the real estate that your are purchasing is.
Use our LTT Calculator to determine your tax liability.