In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of Ontario's land registry office.
You must pay Ontario's land transfer tax at the time the transfer is registered.
Exemptions from land transfer tax are limited. The main exemptions include:
certain transfers between spouses
certain transfers from an individual to their family business corporation
certain transfers of farmed land between family members
certain transfers of a life lease from a non-profit organization or a charity.
Calculating Land Transfer Tax
The tax rates on the value of the consideration are as follows:
Amounts up to and including $55,000 - 0.5%
Amounts exceeding $55,000 up to and including $250,000 - 1.0%
Amounts exceeding $250,000 - 1.5%
Amounts exceeding $400,000 where the land contains one or two single family residences - 2.0%
Example: Value of the consideration equals $95,000.
1. Multiply $55,000 by 0.5% (55,000 × 0.005) = $275
2. Multiply the amount exceeding $55,000 up to $250,000 by 1.0% (40,000 × 0.01) = $400
Total land transfer tax payable = $ 675
For more information on Land Transfer Tax - click here
First Time Homebuyer?
If you are a first-time homebuyer, you may be eligible for a refund of all or part of the tax. Click on the link below for more info.
Land Transfer Tax Refunds for First Time Home Buyers