Land Transfer Tax

Land Transfer Tax

If you buy land or an interest in land in Ontario, you must pay Ontario’s Land Transfer Tax.

Property purchases in Toronto attract a Municipal Land Transfer Tax in additional to the Ontario Land Transfer Tax.

How is the Land Transfer Tax Calculated?

The tax is calculated on the value of the consideration for the transfer. In certain circumstances the Land Transfer Act (Act) deems the value of the consideration to be the fair market value of the land.

On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price (less a HST calculation, if the property purchased is a newly built home). The LTT is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:

    0.5% on the first $55,000 of the purchase price, plus;
    1.0% on the amount exceeding $55,000 up to and including $250,000, plus;
    1.5% on the amount exceeding $250,000 up to and including $400,000, plus;
    2.0% on the amount over $400,000

The tax rate on the portion of value of consideration above $2,000,000.00 for purchases of one or two single family residences will increase from 2.0% to 2.5%.

If you are a first time buyer, please contact us for more information.

Please note: non-residential properties, such as industrial or commercial real estate, there is no 2% charge since the tax rate is 1.5% for any amount of purchase price over $250,000 regardless of the total price.