Understanding the Ontario land transfer tax

The Ontario land transfer tax is a tax that is paid by the buyer of a property in Ontario. It is a one-time tax that is due at the time of closing, and is calculated based on the purchase price of the property.

The Ontario land transfer tax rates are as follows:

• For properties with a purchase price of up to $55,000, the tax rate is 0.5%.

• For properties with a purchase price between $55,000 and $250,000, the tax rate is 1.0%.

• For properties with a purchase price between $250,000 and $400,000, the tax rate is 1.5%.

• For properties with a purchase price between $400,000 and $2,000,000, the tax rate is 2.0%.

• For properties with a purchase price over $2,000,000, the tax rate is 2.5%.

In addition to the Ontario land transfer tax, there is also a municipal land transfer tax in some municipalities in Ontario, including Toronto. The municipal land transfer tax rates are in addition to the Ontario land transfer tax rates, and can be significant. For example, in Toronto, the municipal land transfer tax rates are as follows:

• For properties with a purchase price of up to $55,000, the tax rate is 0.5%.

• For properties with a purchase price between $55,000 and $400,000, the tax rate is 1.0%.

• For properties with a purchase price between $400,000 and $2,000,000, the tax rate is 2.0%.

• For properties with a purchase price over $2,000,000, the tax rate is 2.5%.

It's important to budget for land transfer taxes when purchasing a property in Ontario. The amount of land transfer tax that you will pay can vary depending on the purchase price of the property, and whether or not you are buying in a municipality that has a municipal land transfer tax. You can use online land transfer tax calculators to estimate how much you can expect to pay.