The Ontario land transfer tax (LTT) is a marginal tax typically accessed on the sale of the property upon sale. If you are purchasing a home in Toronto, it is important to note that an additional Toronto Land Transfer Tax will also apply.
For first time home buyers, there is a maximum $4,000 tax rebate on the Ontario land transfer tax.
IMPORTANT NOTE: The following chart is extrapolated from the Land Transfer Tax calculations posted by the Government of Ontario Land Transfer Tax documents effective April 21, 2017. Visit their website for the latest applicable updates, exceptions and additional costs.
For a transfer of land or disposition of beneficial interest in land in which the value of the consideration equals $400,000:
- multiply $55,000 by 0.5% (55,000 × 0.005) = $275
- multiply the amount exceeding $55,000 up to $250,000 by 1.0% (195,000 × 0.01) = $1,950
- multiply the amount exceeding $250,000 up to $400,000 by 1.5% (150,000 × 0.015) = $2,250.
Total land transfer tax payable = $4,475.