Ontario Land Transfer Tax is a part of the closing costs for most Ontario property buyers. Land Transfer taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on actual property sale price, taxes can range from a half a per cent to two per cent of the total value of the property.
If you purchase a property for $260,000, for example, 0.5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 – $250,000, while the $250,000 – $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.
The following chart illustrates Land Transfer Taxes in Ontario –
– Up to $55,000 X .5 % of total property value
– From $55,000 to $250,000 X 1 % of total property value
– From $250,000 to $400,000 X 1.5 % of total property value
– From $400,000 up X 2 % of total property value
In addition to Ontario Land Transfer Tax, if you are purchasing property in the City of Toronto you may be required to pay an additional City of Toronto Municipal Land Transfer Tax.
Read more about the City of Toronto Municipal Land Transfer Tax here.