Ontario Land Transfer Tax

 

 

Almost every province of Canada entails a Land Transfer Tax (LTT) on purchase of property, which is usually a percent of overall property value. However, the LTT rate may differ from province to province. Ontario has its own tax rates for transferring the title of a property. It is necessary to consider this tax as an expense while buying a new home. Following is the table specifying the marginal tax rates for different property values, as per Ontario Ministry of Revenue.

 

PURCHASE PRICE MARGINAL TAX RATE
First $55,000 0.50%
On $55,000 to $250,000 1.00%
On $250,000 to $400,000 1.50%
Over $400,000 2.00%

 

Rebate of First Time Home Buyers

Ontario ministry of revenue provides a rebate on land transfer tax up to $2,000 maximum. However, the first time buyer must fulfill the following eligibility factors.

  • The buyer must not be less than 18 years of age
  • The new home purchased must be occupied by the buyer within 9 months of transaction
  • The buyer must not have any other property in his name, anywhere in the world
  • The spouse of the buyer must not have owned a home while being his/her spouse.
  • The new property purchased must fulfill the requirements of home warranty to claim the tax rebate

It must also be noted that the rebate will cover a full tax amount on properties with an overall value up to $227,500. As per the described tax rates, the tax amount on this value is estimated at $2275 ($227,500 x 1%). However, the properties with the value above $227,500 will not receive a tax rebate amount higher than $2,000.

These rates might not necessarily apply to the provinces other than Ontario. For an instance, Saskatchewan province does not imply a percentage of overall property value, but fix transfer fee for houses with a value below $8,400.