Land Transfer Tax Calculator

Land Transfer Tax Calculator – Ontario

 

Land Transfer Tax Calculator

A tax levied by the city of Toronto on the transfer of land or property from one person to another is known as the land transfer tax. The buyer is usually responsible for paying the tax at the time of purchase, which is determined by the property’s sale price. Whether a property is located inside or outside of the City of Toronto’s limits determines how the land transfer tax in Toronto is calculated.

Toronto Land Transfer Tax Calculation Formula

For properties located within the City of Toronto, the land transfer tax formula is as follows:

  • For the first $55,000 of the property value: 0.5%
  • For the amount exceeding $55,000 up to $400,000: 1.0%
  • For any amount exceeding $400,000: 2.0%

However, first-time homebuyers in Toronto may be eligible for a rebate on the municipal land transfer tax. As of my last update, eligible first-time homebuyers could receive a maximum rebate of $4,000.

For properties located outside of the City of Toronto but within the province of Ontario, the land transfer tax formula is different:

  • For the first $55,000 of the property value: 0.5%
  • For the amount exceeding $55,000 up to $250,000: 1.0%
  • For the amount exceeding $250,000 up to $400,000: 1.5%
  • For the amount exceeding $400,000 up to $2,000,000: 2.0%
  • For any amount exceeding $2,000,000: 2.5%

It’s important to note that these formulas are subject to change, and it’s always a good idea to consult with a real estate lawyer or tax professional for the most up-to-date information and to ensure compliance with all relevant regulations. Additionally, certain exemptions or rebates may apply in specific situations, so it’s essential to consider individual circumstances when calculating the land transfer tax.