9 - All About Land Transfer Tax

9 - All About Land Transfer Tax

  • Land Transfer Tax is levied by the province of Ontario, and based upon the purchase price. 
  • Rates are different for residential properties than for ICI (industrial, commercial, or investment) properties.
  • For first-time residential buyers, there is a Land Transfer Tax Rebate available.

Here’s how to calculate the amount of Land Transfer Tax payable on the purchase of your new home:

Residential Properties

  • 0.5% on the first $55,000 
  • Plus 1.0% of the amount from $55,001 up to $250,000 
  • Plus 1.5% of the amount in excess of $250,001 up to $400,000 
  • Plus 2.0% of the amount in excess of $400,000

For easy calculation, use this table:

 

Purchase Price

How to Calculate Land Transfer Tax Amount

$0 - $55,000

Price x 0.05

$55,001 - $250,000

(Price x 0.01) minus $275

$250,001 - $400,000

(Price x 0.015) minus $1525

> $400,000

(Price x 0.02) minus $3525

ICI Properties

  • 0.5% on the first $55,000 
  • Plus 1.0% of the amount from $55,001 up to $250,000 
  • Plus 1.5% of the amount in excess of $250,001

For easy calculation, use this table:

 

Purchase Price

How to Calculate Land Transfer Tax Amount

$0 - $55,000

Price x 0.05

$55,001 - $250,000

(Price x 0.01) minus $275

> $250,001

(Price x 0.015) minus $1525

 

3 + 3 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.