Land Transfer Tax

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When you buy land or an interest in land in Ontario, you pay Ontario’s land transfer tax. Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).

Who pays land transfer tax?

When you acquire a property or land, you pay land transfer tax to the province when the transaction closes.

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

In some cases, land transfer tax is based on the fair market value of the land, for example, where:

1. 1. the transfer of a lease with a remaining term that can exceed 50 years
   2. the transfer of land is from a corporation to one of its shareholders, or
   3. the transfer of land is to a corporation, if shares of the corporation are issued.

Land Transfer Tax Calculator

For an online calculator, click here!

First-time homebuyers

If you are a first-time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.

Read: Land transfer tax refund for first-time homebuyers

Other land taxes

Local municipalities charge a tax on the residential or business property you own. If you have questions about municipal property tax, contact your local municipality. If your property is located in an unorganized territory (an area without municipal organization) of Ontario, property tax is collected through the provincial land tax program administered by the Provincial Land Tax Office in Thunder Bay.

More about provincial land tax

If you buy property in the City of Toronto, you may also pay the City of Toronto’s own municipal land transfer tax.

Read on: City of Toronto municipal land transfer tax

Harmonized sales tax

The harmonized sales tax (HST) applies to newly constructed homes or substantially renovated homes, but does not apply to resale homes. Buyers of new homes may receive a rebate of up to $24,000 of the provincial portion (8%) of the HST. If you have any questions about the HST rebate please contact the Canada Revenue Agency at 1 800 959-1953.

Read: GST/HST Housing Rebate

Land transfer tax rates

The tax rates calculated on the value of the consideration are:

1. 1. 0.5% up to and including $55,000
   2. 1% above $55,000 up to and including $250,000
   3. 1.5% above $250,000
   4. 2% above $400,000 where the land contains one or two single family residences.

The land transfer tax rate is the same for residents and non-residents of Canada.

Calculating the tax amount

Use the table below to calculate land transfer tax.

1. 1. Residential property: land that contains one or two single family residences
   2. VC: Value of the consideration for the conveyance or disposition
   3. LTT: Land transfer tax payable

Table to calculate land transfer tax.

For the Value of the Consideration                                Formula

up to and including $55,000                                              LTT = VC × 0.005

above $55,000 and up to $250,000                                    LTT = (VC × 0.01) – $275

above $250,000, for property other than residential            LTT = (VC × 0.015) – $1,525

above $250,000 up to $400,000, for residential property     LTT = (VC × 0.015) – $1,525

for residential property above $400,000                             LTT = (VC × 0.02) – $3,525

Vacant lot with a construction contract

Where a construction contract is entered into as part of the arrangement relating to the purchase of a vacant lot or lots, the value of the consideration is calculated on the:

1. 1. total cost of the lot, plus
   2. cost of construction contract

Source: http://www.fin.gov.on.ca/en/tax/ltt/