Land Transfer Tax
You pay Land Transfer Tax when you buy a property or land in Ontario, which is due when the transaction closes. If you are buying a property or land in Toronto, you also pay a Municipal Land Transfer Tax and Administration Fee.
The tax rates calculated on the value of the consideration of the land or property are:
-0.5% on the first $55,000.00 of the purchase price plus
-1.0% on the amount exceeding $55,000.00 up to and including $250,000.00 plus
-1.5% on the amount exceeding $250,000.00 up to and including $400,000.00 plus
-2.0% on the amount exceeding $400,000.00 up to and including $2,000,000.00 plus
-2.5% above $2,000,000.00
First time home buyers may, subject to certain exceptions, receive up to a $4,000 rebate. For example, land transfer tax on a $500,000.00 home in Milton, Ontario is $6,475. For elgible first time home buyers, a $4,000 rebate will apply, so the final amount of Land Transfer Tax payable will be $2,475.
You can use the following land transfer tax calculator to easily find out your land transfer tax amount: