Land Transfer Tax
Land transfer tax( LTT) is often overlooked when considering the total cost of purchasing a home. All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead levy a much smaller transfer fee. In most provinces the tax is calculated as a percentage of property value, using asking price as a close estimate. Homebuyers in Toronto, however, also incur an additional municipal tax.
To help offset the unwelcome cost, Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first-time homebuyers.
Land Transfer Tax Formulas
Up to $ 55,000 |
= Price x 0.5 % |
$ 55,001- $ 250,000 |
= Price x 1 %- $ 275 |
$ 250,001- $ 400,000 |
= Price x 1.5 %- $ 1,525 |
$ 400,001- $ 2,000,000 |
= Price x 2 %- $ 3,525 |
Over $ 2,000,000 |
= Price x 2.5 %- $ 13,525 |
Ontario first time buyer rebate- $ 4,000 Toronto first time buyer rebate- $ 4,475
ASKING PRICE
Example: Property in Toronto ASKING PRICE $ 1,000,000
PROVINCIAL TAX
MUNICIPAL TAX
REBATE
( FIRST TIME HOME BUYER)
LAND TRANSFER TAX
PROVINCIAL TAX
Price x 2 %- $ 3,525
MUNICIPAL TAX
Price x 2 %- $ 3,525
REBATE
( FIRST TIME HOME BUYER) $ 4,000 + $ 4,475
LAND TRANSFER TAX
Total Tax- Rebate
$ 16,475
$ 16,475
$ 8,475
$ 24,475