Land Transfer Tax Ontario
LAND TRANSFER TAX CALCULATOR ONTARIO
Purchasers in Ontario add Land Transfer Taxes to their list of closing costs. Land transfer taxes are levied on properties that are changing hands, are the responsibility of the purchaser.
Ontario's Land Transfer Tax:
First $55,000 X 0.5 %
On $55,000 to $250,000 X 1 %
On $250,001 to $400,000 X 1.5 %
Over $400,001 X 2.5 % where the land contains one or two single family residences.
Additional New Toronto's Land Transfer Tax:
Toronto home buyers will pay additional new tax rates:
0.5% on first $55,000,
1% on next $345,000, and
2% on portion over $400,000
Exemption: First time buyer do not pay the new tax on the first $400,000 of a property purchase. More about Toronto's new land transfer tax
Land Transfer Tax Rebate
First-time home buyers of an eligible home would receive a maximum refund of $4,000. Or in other words, first-time buyers will not pay land transfer tax on the first $368,000 of the cost of their homes.
Eligibility of the buyer:
- must be at least 18 years old
- must occupy the home as a principle residence no later than 9 months of closing
- must never have owned, or had any ownership interest in, an eligible home anywhere in the world while he/she was a purchaser's spouse
Eligibility of the property
- a detached home, semi-detached home, townhouse or condominium unit
- shares of the capital stock of a co-operative corporation if the shares are acquired for the purpose of acquiring the right to inhabit a housing unit owned by the corporation
- a residential unit that is a duplex, triplex or fourplex*
- a partial ownership interest as a tenant in common of real property if the ownership interest was acquired for the purpose of inhabiting a housing unit forming part of the real property
- a newly constructed home built from a builder registered with TARION warranty corporation
- any other residential property as may be prescribed
Restrictions on amount claimed:
- between non-spouses: refund is reduced for the proportionate interest of the co-owner who is not eligible
- between spouses: If one spouse is first time home buyer and the other owned a home before, but not since becoming a spouse of the first time home buyer, then the spouse who is the first time home buyer would claim the whole rebate
- Investment properties do not qualify for the first time buyer rebate
- Rebate received on day of registration at land registry office
- 18 month deadline (from the date that the conveyance is registered) if applying for refund directly from Land Transfer Tax office. Qualifying tax payer or their solicitors may claim an immediate refund at the time of registration.
- Every commercial, industrial, apartment building or vacant land that costs more than $400,000.00, the tax rate will increase from 1.5% to 2%.
- In addition, if you buy a house or duplex that costs more than two million dollars, the tax will increase from 2% to 2.5% for every dollar over two million. *
For more information on land transfer tax rebate speak to your real estate lawyer or visit Revenue Canada's website.