Susan  Bodie

Susan Bodie

REALTOR®

Bosley Real Estate Ltd., Brokerage *

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416-271-9863
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Land Transfer Tax


Purchasers in most large Canadian cities can add Land Transfer Taxes to their list of closing costs. Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase taxes) are part of the deal.

These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from 0.5 - 2% of the total purchase price.

Many provinces have multi-tiered taxation systems that can be complicated. For example, if you purchase a property for $300,000 in Ontario, 0.5% is charged on the first $55,000, 1% is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5%. Your total tax bill? $2,975.00.
ONTARIO Land Transfer Tax
Up to $55,000 X 0.5% of total purchase price.

From $55,000 to $250,000 X 1% of total purchase price.

From $250,000 to $400,000 X 1.5% of total purchase price.

From $400,000 up X 2% of total purchase price.
To complicate matters further, if you purchased that property in Toronto, Ontario, your tax bill will be double ($5,950.00). This is because the city of Toronto has its own municipal land transfer tax, equal to that of the Province.

If you want to avoid doing math, try this Land Transfer Tax calculator (wait a few seconds for it to load), which conveniently shows you the tax due for any purchase price in any municipality in the country. This calculator also factors in refunds for first-time home buyers through the Land Transfer Tax Rebate Program. Click HERE to learn more about this program.

 

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