Purchasers in Toronto & the GTA can add Land Transfer Taxes to their list of closing costs. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from half of a percent to two percent of the total purchase price.
In Ontario, if you purchase a property for $300,000, 0.5% is charged on the first $55,000, 1% is charged on $55,000 – $250,000, while the $250,000 – $400,000 range is taxed at 1.5%. Your total tax bill? $2,975.00.
The following chart illustrates Land Transfer Taxes in Ontario.
|Up to $55,000 X 0.5% of total purchase price|
|From $55,000 to $250,000 X 1% of total purchase price|
|From $250,000 to $400,000 X 1.5% of total purchase price|
|From $400,000 up X 2% of total purchase price|
Land Transfer Tax (LTT) Rebate Program
When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax:
No land transfer tax is payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.
The refund will be reduced if one (or more) of the purchasers is not a first‑time homebuyer. The refund will be proportionate to the interest acquired by the individuals who qualify for the refund.
Requirements to qualify for the refund
To qualify for a refund:
The purchaser must be at least 18 years old.
The purchaser must occupy the home as their principal residence within nine months of the date of transfer.
The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.
Time limit to apply for refund
A qualifying purchaser must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs.
For more information call the Ontario Finance Ministry at 1-800-263-7965.