The Province of Ontario charges a Land Transfer Tax (LTT) on the acquisition of real property calculated as follows:
- 0.5% of the purchase price up to and including $55,000;
- 1% of the purchase price above $55,000 up to and including $250,000;
- 1.5% of the purchase price above $250,000; and
- 2% of the purchase price above $400,000 where the land contains one or two single-family residences.
So for a $500,000 house in Ontario but outside the City of Toronto, the total amount of land transfer tax payable would be $6,475.
As of Jan. 1, 2017, LTT rates increased as follows:
- ·on the portion of the purchase price above $2 million of one or two single-family residences, such as detached and semi-detached homes, townhomes and condominiums, to 2.5% from 2%.
- ·on the portion of the purchase price above $400,000 of all other types of property, such as commercial, industrial, multi-residential, and agricultural properties, to 2% from 1.5%.
The increases are being used to fund an increase in the LTT rebate for qualified first-time buyers from a maximum of $2,000 to a maximum of $4,000, depending on the value of the purchase.
The City of Toronto charges its own municipal land transfer tax (MLTT) over and above the land transfer tax charged by the Ontario government. The following changes to Toronto’s MLTT rate structure and rebate eligibility criteria and structure came into effect on March 1, 2017:
For conveyances and dispositions of properties located in the City of Toronto and containing at least one and not more than two single family residences, the MLTT is calculated as follows:
- 0.5% of the purchase price up to and including $55,000
- 1% of the purchase price above $55,000 up to and including $250,000
- 1.5% of the purchase price above $250,000 up to and including $400,000
- 2% of the purchase price above $400,000 up to and including $2,000,000
- 2.5% of the purchase price above $2,000,000
For conveyances and dispositions made of all other properties located in the City of Toronto, the MLTT is calculated as follows:
- 0.5% of the purchase price up to and including $55,000
- 1% of the purchase price above $55,000 up to and including $250,000
- 1.5% of the purchase price above $250,000 up to and including $400,000
- 2% of the purchase price above $400,000