Land Transfer Tax Calculator


This calculator is provided for demonstration purposes only. Your are strongly advised to seek legal advice as to the accurate land transfer cost prior to purchasing a home.

 

Land Transfer Tax Explained

Province of Ontario’s Land Transfer Tax

The Province of Ontario applies a Land Transfer Tax when land is transferred from one owner to another. This tax is paid by the purchaser upon registering the Transfer/Deed. For first time homeowners buying a new home from a registered builder, the first $2,000 in provincial Land Transfer tax is waived. There is also a reduction for the City of Toronto Land Transfer Tax.

Calculations for the Ontario Land Transfer Tax:

  • The first $55,000 of the purchase price is taxed at a rate of 0.5%
  • $ 55,000 up to and including $250,000 is taxed at an additional rate of 1.0%
  • $250,000 up to and including $400,000 is taxed at an additional rate of 1.5%
  • over $400,000 on one or two family residential properties is taxed at an additional rate of 2%.

(This amount is not applicable to industrial or commercial properties. The tax rate is 1.5% for a purchase price above $250,000)

City of Toronto Land Transfer Tax

In addition to the Province’s Land Transfer Tax, the City of Toronto approved a new Municipal Land Transfer Tax effective February 1, 2008, under the City of Toronto Act, 2006. This additional tax is applied to all purchases of homes in the city of Toronto.

Calculations for the Municipal Land Transfer Tax:

  • Purchase price x 0.5 % on the first $55,000
  • Purchase price x 1.0 % on the next $345,000
  • Purchase price x 2% on the entire portion over $400,000