Land Transfer Tax Calculation Explained
When you buy a home, one of the closing costs will be a Land Transfer Tax. This is a provincial tax and is based on the selling price of the property. Here is how you determine how much you will have to pay.
Land Transfer Tax Calculations
$ 5.00 per $1,000 of the purchase price on the first $55,000
$10.00 per $1,000 of the remaining value up to $250,000
$15.00 per $1,000 of the purchase price over $250,000
ie: Purchase Price $225,000
$55,000 @ $ 5.00/$1,000 = $275 +
$170,000 @ $10.00/$1,000 = $1,700
Total Land Transfer Tax of $1,975
Don’t forget to budget for this when you are thinking about buying a home.
First-time homebuyers are eligible for a refund of all or part of the tax.
The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance. No interest is paid on this refund.
To claim a refund:
You must be at least 18 years of age;
You must occupy the home as your principal residence within 9 months of the date of transfer; and
cannot have ever owned a home, or an interest in a home, anywhere in the world.
your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse.
To find out more go to: http://www.fin.gov.on.ca/en/refund/newhome/index.html