Land Transfer Tax
Purchasers in most large Canadian cities can add Land Transfer Taxes to their list of closing costs. Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are part of the deal. 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.
Many provinces have multi-tiered taxation systems that can be complicated. For example, if you purchase a property for $300,000 in Ontario, 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.
*Land Transfer Tax for Toronto Residential Properties:
To calculate the total LTT payable for Residential properties in Toronto, Add the "Ontario Provincial Land Transfer Tax" and "Toronto Land Transfer Tax" together:
Use the table below to calculate land transfer tax.
- Residential property: land that contains one or two single family residences
- VC: Value of the consideration for the conveyance or disposition
- LTT: Land transfer tax payable
Ontario Provincial LTT:(Applies to all Residential Ontario properties, including Toronto) Formula
0.5% on the first $55,000 LTT = VC × 0.005
plus 1.0% of the amount from $55,001 to $250,000 LTT = (VC × 0.01) - $275
plus 1.5% of the amount in excess of $250,001 to $400,000 LTT = (VC × 0.015) - $1,525
plus 2.0% of the amount in excess of $400,000 LTT = (VC × 0.02) - $3,525
Amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%.
Toronto LTT:(Applies to Toronto Residential properties only)
0.5% on the first $55,000 LTT = VC × 0.005
plus 1.0% of the amount from $55,001 to $400,000 LTT = (VC × 0.01) - $275
plus 2.0% of the amount in excess of $400,000 LTT = (VC × 0.02) - $4275
Need more Details, please contact us.
The following chart illustrates Land Transfer Taxes by province.
| ONTARIO |
| Land Transfer Tax (go to calculator) 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 |
| BRITISH COLUMBIA |
| Property Purchase Tax Up to $200,000 X 1% of total purchase price From $200,000 up X 2% of total purchase price |
| MANITOBA |
| Land Transfer Tax Up to $30,000 N/A From $30,000 to $90,000 X 0.5% of total purchase price From $90,000 to $150,000 X 1% of total purchase price From $150,000 up X 1.5% of total purchase price |
| QUEBEC |
| Transfer Tax Up to $50,000 X 0.5% of total purchase price From $50,000 to $250,000 X 1% of total purchase price From $250,000 up X 1.5% of total purchase price |
| Halifax Metro |
| 1.5% on total purchase price |
| Outside HalifaxCounty |
| Check with local municipality. |
*Source: Ministry of Finance website
