Calculating Land Transfer Tax - Ontario and Toronto

We often get questions concering Land Transfer taxes in Real Estate transactions, and especially the additional fees when purchasing in Metro Toronto.

Here is a little backgrounder to help answer your land transfer tax questions.  In Ontario, If you purchase land or an interest in land everyone is required to pay the Provincial Land Transfer Tax.

If you have purchased this land or an interest in land located in Metro Toronto, you are also required to pay the Municipal Land Transfer Tax in addition to the Provincial Land Transfer Tax.

Ontario Provincial Land Transfer Tax (PLTT)

Based on purchase price:

Up to $55,000 X 0.5% of total property value
From $55,000 to $250,000 X 1% of total property value
From $250,000 to $400,000 X 1.5% of total property value
From $400,000 up X 2% of total property value

Toronto Municipal Land Transfer Tax (MLTT)

Based on purchase price, in addition to the Ontario Land Transfer Tax:

Up to and including $55,000.00 X 0.5% of total property value
From $55,000.01 to $400,000.00 X 1% of total property value
Over $400,000.00 X 2% of total property value

Land Transfer Tax Rebates: First Time Home Buyers

If you are a first time home buyer you are eligable for rebates for both the Municipal and Provincial Land Transfer Tax:

  • Municipal Land Transfer Tax (MLTT): Maximum $3725
  • Provincial Land Transfer Tax (PLTT): Maximum $2000

 

Make sure you factor in this additional expense when budgeting for your home purchase!  

As always, this is just a guide, and you should seek legal and accounting advice with regard to tax implications.  We accept no responsibility for any loss arising from any use or reliance on the information contained or produced through this information provided above.