Land Transfer Tax

In Ontario, purchasers of new and resale residential homes must pay a tax at the time of the closing of the purchase known as the Land Transfer Tax.The tax is calculated upon a sliding scale that increases with the purchase price of the house (excluding any GST).

The rate of tax as of January 1st, 2017 is as follows:

  • 0.5% – $55,000
  • 1.0% – of next $195,000
  • 1.5% – of next $150,000
  • 2.0% of remainder
  • Amounts exceeding $2,000,000 – 2.5%

The Ontario government offers a refund of this tax for qualified buyers up to a certain amount. The refund applies to first time buyers of new and resale homes. The maximum rebate is $4,000.

Consult with your lawyer about the mechanism for applying for and receiving the refund.

In addition, purchasers of new and resale homes in Toronto must also pay a City imposed municipal land transfer tax.

The City of Toronto Tax rates are the same as the Ontario provincial rates.

Effective April 21, 2017, an additional 15% Non-Resident Tax is imposed on the purchaser of a residential property in the Greater Golden Horseshoe area by individuals who are not citizens or permanent residents of Canada.