One of the least fun parts of buying a home in Ontario, and especially in Toronto, is paying Land Transfer Tax.
Who pays land transfer tax?
Buyers of houses and condos in Ontario pay land transfer tax when they purchase a property – Sellers never pay. Your lawyer will arrange for land transfer taxes to be paid when the deed to the new home is transferred in your name (on closing day).
Buyers in Toronto are especially unlucky – we also get to pay the Toronto LandTransfer Tax. The second tax is a constant source of debate (and a certain mayor did promise to repeal it during his election campaign) – though to be honest, we can’t see this tax being eliminated anytime soon…no matter what Mr. Gravy says.
Some good news for first time buyers is that they may be eligible to receive a refund for land-transfer tax
How much is land transfer tax in Toronto and Ontario?
Toronto and Ontario land transfer taxes are based on a sliding scale, though to be honest, it’s much easier to just use a Land Transfer Calculator:
Ontario Land Transfer Tax:
- 5% of the value of the property up to and including $55,000
- 1% of the value which exceeds $55,000 up to and including $250,000
- 5% of the value which exceeds $250,000; and
- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
Toronto Land Transfer Tax:
- 5% up to and including the first $55,000
- 1% of the value which exceeds $55,000 up to and including $400,000
- 2% of the value over $400,000
Confused yet? Yeah, that’s how we can help.
Anyway, if you’re planning on buying a house or condo in Toronto, we’ll help ensure you’ve budgeted for land transfer tax!