Calculating Land Transfer Tax

When you buy a home in Ontario, you must pay a tax called the Ontario Land Transfer Tax at the time of closing. This tax is usually based on the amount paid for the property and is paid when the transfer of ownership is registered.

Currently, the land transfer tax in Ontario is as follows:

0.5% on the first $55,000 of the purchase price
1.0% on the portion between $55,000-250,000
1.5% on the balance over $250,000
2.0% on anything above $400,000*

*If the home falls under the single family and duplex residence, an additional tax of 0.5% applies.

Non-resident of Canada? The land transfer rate is the same for residents or non-residents of Canada.

Some EXEMPTIONS to the rule:

  • Transfer of title between spouses.
  • Transfers from an individual to a family business corporation.

What if you’re a FIRST-TIME home buyer?

You may be eligible for a refund of all or part of the tax (the maximum amount of the refund is $2,000).

For example:

Cost of Home Tax Payable Tax Refund Net Tax Payable
$100,000 $725 $725 $0
$200,000 $1,725 $1,725 $0
$300,000 $2,975 $2,000 $975
  • you must be at least 18 years old
  • you must occupy the home as your principal residence within nine months of the date of transfer
  • you cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world

More information at: http://www.fin.gov.on.ca/en/refund/newhome/