Purchasers in Ontario add Land Transfer Taxes to their list of closing costs. Land transfer taxes are levied on properties that are changing hands, and are the responsibility of the purchaser.
Ontario’s Land Transfer Tax: Up to $55,000 X 0.5 % of total property value From $55,000 to $250,000 X 1 % of total property value, less $275 From $250,000 to $400,000 X 1.5 % of total property value, less $1525 From $400,000 up X 2 % of total property value, less $ 3525 Toronto’s Land Transfer Tax:
Toronto home buyers will pay additional new tax rates (on purchase agreements signed after Dec 31, 2007 and close after Feb 1, 2008)
0.5% on first $55,000, 1% on next $345,000, and 2% on portion over $400,000
Exemption: First time buyer do not pay the new tax on the first $400,000 of a property purchase.
Use the land transfer tax calculator to calculate both your Ontario and City of Toronto (if applicable) land transfer taxes. First time home buyers qualify for a maximum $2,000 (LTT on a $227,500 home) provincial rebate and a maximum $3,725 (LTT on a $400,000 home) City of Toronto rebate.
“Toronto’s Condo Authority”