Land Transfer Taxes .....

When calculating the total cost of acquiring Real Estate in Ontario, one must factor in the Land Transfer Tax. An additional tax is payable in the City of Toronto. Provincial Land Transfer Tax is payable by anyone submitting a deed or transfer for registration under the Registry or Land Titles systems. The tax is payable on every conveyance of land, with a few notable exceptions, such as conveyances for mortgage purposes or a gift to a charitable organization. In the normal transaction, land transfer tax is paid by the Purchaser.

The Land Transfer Tax rate is:

.005 x the first $55,000. plus,

.01 x the next $55,000. - $250,000. plus,
.015 x remainder of purchase price plus,

.005 surcharge on single family homes and duplexes for amounts over $400,000.

An example calculating land transfer tax for a single family home purchased for $450,000.
follows ( the surcharge above $400,000. in this example applies only to single family homes and duplexes )
Purchase Price Calculation of land transfer tax
$0 - $55,000 .005 x $55,000. = 275
$55,000 - $250,000 .01 x $195,000 = 1,950
$250,000 to $400,000 .015 x $150,000. = 2,250
$400,000 to $450,000 (.015 + .005) x $50,000 = 1000

Total Land Transfer Tax payable in this example would equal $ 5,475.

Land transfer tax is payable by the purchaser’s lawyer at time of tendering a conveyance to the land registrar. In order for the registrar to be satisfied the amount paid is correct, an affidavit setting out the true value of the consideration for the conveyance must be submitted.

This material is for guidance only. Exact information should be obtained from your lawyer.
The Ministry of Finance is responsible for the Land Transfer Tax Act. The Motor Fuels and Tobacco Tax Branch administers the Act and may be contacted at: 33 King Street West, 3rd Floor, P.O. Box 625, Oshawa, Ontario L1H 8H9. Telephone: 905-433-6393 or toll free 1-800-263-7965. Copies of the Land Transfer Tax Act can be purchased from Publications Ontario, 880 Bay Street, Toronto, Ontario M7A 1N8 or telephone 416-326-5310 or toll free 1-800-668-9938.