9 – All About Land Transfer Tax

9 – All About Land Transfer Tax

  • Land Transfer Tax is levied by the province of Ontario, and based upon the purchase price. 
  • Rates are different for residential properties than for ICI (industrial, commercial, or investment) properties.
  • For first-time residential buyers, there is a Land Transfer Tax Rebate available.

Here’s how to calculate the amount of Land Transfer Tax payable on the purchase of your new home:

Residential Properties

  • 0.5% on the first $55,000 
  • Plus 1.0% of the amount from $55,001 up to $250,000 
  • Plus 1.5% of the amount in excess of $250,001 up to $400,000 
  • Plus 2.0% of the amount in excess of $400,000

For easy calculation, use this table:

Purchase PriceHow to Calculate Land Transfer Tax Amount
$0 – $55,000Price x 0.05
$55,001 – $250,000(Price x 0.01) minus $275
$250,001 – $400,000(Price x 0.015) minus $1525
> $400,000(Price x 0.02) minus $3525

ICI Properties

  • 0.5% on the first $55,000 
  • Plus 1.0% of the amount from $55,001 up to $250,000 
  • Plus 1.5% of the amount in excess of $250,001

For easy calculation, use this table:

Purchase PriceHow to Calculate Land Transfer Tax Amount
$0 – $55,000Price x 0.05
$55,001 – $250,000(Price x 0.01) minus $275
> $250,001(Price x 0.015) minus $1525