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Land Transfer Tax Costs
CLICK HERE for a link to the Royal LePage Land Transfer Tax Calculator that will calculate it for you.
Note: I believe the information provided herein is accurate but should be used
for planning purposes - check with your financial institution for final calculations
On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price (less a calculation regarding GST, if the property purchased is a newly built home). The land transfer tax 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.
(Be aware that for 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.)
Example: The land transfer tax on a property transferred for $200,000 is calculated as $275.00 on the first $ 55,000 (0.5% = $ 275.00), plus $1,450.00 on the next $145,000 (1.0% = $1,450.00), for a total of $1,725.00.
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