REAL ESTATE LAW

WHAT IS LAND TRANSFER TAX?

Land Transfer Tax is payable on purchasing a property in Ontario. This tax is referred to as the Provincial Land Transfer Tax.

For additional information it’s always a good idea to consult with a real estate lawyer.

WHO PAYS LAND TRANSFER TAX?

Land Transfer Tax is payable by the purchaser.

WHEN IS LAND TRANSFER TAX PAYABLE?

Land Transfer Tax is payable on the closing of a real estate purchase.

HOW IS LAND TRANSFER TAX CALCULATED?

This material is reproduced directly from the Ontario Ministry of Finance.

Provincial Land Transfer Tax is calculated as follows:

  • 0.5% up to and including $55,000
  • 1% above $55,000 up to and including $250,000
  • 1.5% above $250,000
  • 2% above $400,000 where the land contains one or two single family residences.

WHAT IF I AM BUYING IN TORONTO?

Purchasers in the City of Toronto are often surprised to find that they will be paying double when it comes to the Land Transfer Tax.

Purchasers will be responsible for the Provincial Land Transfer Tax but also the Municipal Land Transfer Tax that is calculated as follows:

  • 5% on the amount of up to $55,000
  • 0% for purchase price between $55,000 - $400,000 and then
  • 0% for purchase over $400,000

I AM BUYING A HOME FOR THE FIRST TIME.

If you are buying a home for the first time the following may apply:

A refund on Land Transfer Tax for Ontario of up to $2,000 and $3,725 for Toronto.

In order to qualify a new home buyer must meet the following criteria. This information is reproduced directly from the Ontario Ministry of Finance:

  • must be at least 18 years old
  • must occupy the home as your principal residence within nine months of the date of transfer
  • cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, and
  • if you entered into an agreement of purchase and sale before December 14, 2007, the eligible home must be newly constructed and you must be eligible for  the Tarion New Home Warranty.

If you have a spouse, your spouse cannot have owned an eligible home, or an interest in an eligible home, anywhere in the world while being your spouse.

You must apply for a refund within 18 months after the date of the transfer.

If you have additional questions about the sale or purchase of your home contact our office to consult with one of our Real Estate Lawyers in Burlington.

We are located at 901 Guelph Line, Burlington.

416-505-4901

If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.

Toll Free: (800) 939-9211