Land Transfer Tax Decoded


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When you purchase a home or a residential property in Ontario you are required to pay a ‘provincial land transfer’ tax.  Ontario Land Transfer Tax (LTT) is calculated on the purchase price (less a calculation regarding HST, if the property purchased is a newly built home).  LTT is payable by the buyer on the purchase price of the home.  Your lawyer will calculate and collect the amount upon closing.   The following is how LTT is calculated in Ontario:

So for example, a $390,000 resale home would have a land transfer tax of approximately $4,325.  ($275 + $1950 + $2,100 = $4,325)

(The City of Toronto has an additional city land transfer tax for homes purchased in that city!)

If you’d like to read a little more on this topic visit the Government of Ontario website:

http://www.fin.gov.on.ca/en/tax/ltt/

For a quick land transfer tax calculator visit the Ottawa Real Estate Board website:

http://www1.ottawarealestate.org/home/Calculators/LandTransferTaxCalculator.aspx

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