When you buy a house, condo, or piece of land, you are subject to pay a land transfer tax to the province, which is due upon closing. In Ontario, there is both a Provincial Land Transfer Tax, and inside the City of Toronto, a second Municipal Land Transfer Tax.
Land transfer taxes are based on the amount of consideration paid for the property at the time of closing. In some instances Land Transfer Taxes can be deemed to be at the “fair market value of the land”, but generally speaking they are based on the sale price of the property.
If an agreement of purchase and sale is entered into after November 14, 2016, and registration or the disposition occurs on or after January 1, 2017, the tax rates on the value of the consideration are as follows:*
- amounts up to and including $55,000: 0.5%
- amounts exceeding $55,000, up to and including $250,000: 1.0%
- amounts exceeding $250,000, up to and including $400,000: 1.5%
- amounts exceeding $400,000: 2.0%
- amounts exceeding $2,000,000, where the land contains one or two single-family residences: 2.5%.
*Sourced from: https://www.ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax
Use our handy calculator below to estimate how much you will be paying in land transfer tax for the property you are purchasing and, don’t forget if you have any questions don’t hesitate to give us a call at 416-495-2746.