ONTARIO LAND TRANSFER TAX REFUND PROGRAM
First-time buyers of resale homes benefit from new tax measure
The Ontario government is giving all first-time home buyers a break on land transfer tax by expanding the Land Transfer Tax Refund Program to include purchases of resale homes.
First-time buyers of resale homes, as well as newly constructed homes, are eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
For more information please visit: http://www.gov.on.ca.
Ontario Land Transfer Tax Overview
Ontario Land Transfer Tax is a part of the closing costs for most Ontario property buyers. Land Transfer taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on actual property sale price, taxes can range from a half a per cent to two per cent of the total value of the property.
If you purchase a property for $260,000, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.
The following chart illustrates Land Transfer Taxes in Ontario.
ONTARIO
Land Transfer Tax (Ontario and Toronto Land Transfer Tax calculator)
Up to $55,000 X .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
In addition to Ontario Land Transfer Tax, if you are purchasing property in the City of Toronto you may be required to pay an additional City of Toronto Municipal Land Transfer Tax. You can read more about that here.
