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When you a buy a house, condo or land in Ontario you are subject to land transfer tax which is due upon closing. Use Ratehub.ca’s calculator to determine your applicable land transfer tax or view Ontario's current rates below and follow along with our sample calculation.
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Content last updated: July 28, 2020
The Ontario land transfer tax (LTT) is a marginal tax and each portion of your home’s value is taxed at a unique rate. These tax rates are as follows:
Purchase Price of Home | Marginal Tax Rate | |||
---|---|---|---|---|
First $55,000 | 0.5% | |||
$55,000.01 to $250,000.00 | 1.0% | |||
$250,000.01 to $400,000.00 | 1.5% | |||
$400,000.01 to $2,000,000.00 | 2.0% | |||
Over $2,000,000 | 2.5% |
If you are purchasing a home in Toronto, a Toronto Land Transfer Tax will also apply (see below). Beyond the land transfer tax you will also have to pay other closing costs in Ontario when purchasing a home. These closing costs could include fees for an Ontario real estate lawyer and other buyer's fees.
Let’s assume that you are purchasing a house for $300,000:
For first time home buyers, there is a maximum $4,000 tax rebate on the Ontario land transfer tax. Based on Ontario’s land transfer tax rates, this refund will cover the full tax for homes up to $368,000. For homes purchased for more than $368,000, buyers will receive the full $4,000 rebate and pay the remaining LTT balance.
The following table contains several example calculations of the Ontario land transfer tax rebate:
Purchase price of home | Land title transfer tax | First-time home buyer rebate | Net tax payable |
---|---|---|---|
$100,000 | $725 | $725 | $0 |
$200,000 | $1,725 | $1,725 | $0 |
$227,500 | $2,000 | $2,000 | $0 |
$600,000 | $8,475 | $4,000 | $4,475 |
Taxpayers can claim an immediate refund when registering the land transfer papers and paying their taxes. Tax rebate application forms are available online for home buyers registering electronically or on paper at government offices.
If the rebate is not claimed at the time of registration, the full tax is paid and a refund claim can be made to the Ministry of Finance within 18 months. Information required for the application include:
If you are a non-resident of Ontario, you will also be charged a 15% speculation tax on all property purchases within the Greater Golden Horseshoe Region (GGH). The GGH includes the entire Greater Toronto Area, stretching to Peterborough and Northumberland in the east, Wellington and Branford in the west, and extending to the Canadian border at Niagara in the south.
This tax was introduced in 2017 in an attempt to reduce speculative investing by foreign actors inflating the market.
Property sales in the Greater Toronto Area are also subject to the City of Toronto's municipal land transfer tax, in addition to the provincial land transfer tax. The following table outlines the current tax rates:
Purchase Price of Home | Marginal Tax Rate | |||
---|---|---|---|---|
First $55,000 | 0.5% | |||
$55,000.01 to $250,000.00 | 1.0% | |||
$250,000.01 to $400,000.00 | 1.5% | |||
$400,000.01 to $2,000,000.00 | 2.0% | |||
Over $2,000,000 | 2.5% |
We have a dedicated article on Toronto Land Transfer Tax with more information.