What Is A Land Transfer Tax?

There are many costs when you’re buying a home. The most overlooked is the Land Transfer Tax (LTT). Ontario has a land transfer tax and is calculated as a percentage of property value, usually the asking price.  

All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead charge a smaller transfer fee. In most provinces the tax is calculated as a percentage of the property value, usually the asking price.

There’s also a municipal land transfer tax in Toronto.

How To Use the Calculator?

Enter your property location

Depending on what province you live in the fees will vary as well as rates so entering your location will give accurate results for both the land transfer tax and any applicable provincial or municipal rebates.

Are You a First time Home Buyer?

Whether you’re a first-time home buyer or not will determine eligibility for the rebate programs as they’re only available to first-time buyers.

Ontario and Toronto first-time homebuyer land transfer tax refunds

You may be eligible for the Ontario land transfer tax refund equal to the full value of the land transfer tax up to a maximum of $4,000.

Based on Ontario land transfer tax rates, the refund will cover the fully taxed amount on houses up to $368,333.

For houses over $368,333, homebuyers will receive the maximum $4,000 refund and must pay the remaining LTT balance. To obtain this refund, you need to apply within 18 months after the purchase of the home.

First-time homebuyers in Toronto of new and resale homes are eligible to receive a rebate up to a maximum of $4,475.

Eligibility

• The buyer must be a Canadian citizen or permanent resident of Canada
• The buyer must be older than 18 years
• The buyer must occupy the home within nine months of purchase
• The buyer cannot have owned a home anywhere in the world
• The buyer’s spouse cannot have owned a home while being your spouse

The Asking Price

The asking price of the home multiplied by the tax rate percentage in your province and municipality will determine the land transfer tax payable.

The calculator will also automatically determine your rebate based on the above information.

Non-resident Speculation Tax

There is an additional tax for non-residents. If you meet both criteria the non-resident tax will be added.

There are a limited number of exemptions available which allow purchasers to avoid the added non-resident speculation tax or obtain a rebate if the tax has already been paid. Speak with an experienced real estate lawyer to find out if these exemptions are available to you.

With esteemed, skilled and capable lawyers in Toronto and lawyers in Vaughan, Hummingbird Lawyers LLP has locations in both areas to serve our clientele. Choose the location more convenient to you, and let us assist you with your legal matters.

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