Ontario Land Transfer Tax

The government of Ontario imposes the Ontario Land Transfer Tax (LTT) on transfers of residential real property. It is payable on the purchase price and involves a resale property.

The LTT is payable by the purchaser at the time of closing when the Transfer/ Deed of Land is registered at the Ontario Land Registry Office. The following scale is used:

  • 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.

Example: The Ontario 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.

Things to Keep In Mind
  • If you are buying a new home from a builder then the Land Transfer Tax is calculated on the purchase price net of HST.
  • If you are a fist time purchaser (resale property or a newly built unit) then you may be eligible for the Ontario Land Transfer Tax refund.
  • The Toronto Land Transfer Tax may also be applicable if you are buying a property in Toronto, South of Steeles between the Western boundary of Etobicoke and the Eastern boundary of Scarborough.

For further information please visit our website at www.nanda.ca