- Land Transfer Tax -


Land Transfer Tax (LTT) is a tax that must be paid by the purchaser of any house or condominium in Ontario. It is directly based on the purchase price of the home.  LTT must be paid before the deed can be registered, showing the purchaser as the new owner.  Your lawyer will pay this amount on the Closing Day on your behalf, from funds you have provided.

You may not have to pay Land Transfer Tax if you are a first-time buyer of a home.   You are currently exempt from the first $2000.00 of LTT if you meet this condition.  Your lawyer will provide you with the necessary form to ensure you this exemption.

 

How to calculate the Land Transfer Tax?

The Land Transfer Tax calculation is based on the purchase price of the home as follows:

0.5% on the first $55,000 plus,

1.0% on the next $195,000 plus,

1.5% on the next $150,000 plus,

2.0 % on the amount over $400,000.00

** A short cut to figure out LTT, if your purchase price is less than $250,000.00, is to calculate 1% of the purchase price

and then subtract $275.00.

Example.: Purchase price is $220,000.00. 1% would be $2200.00 subtract $275.00 = $1925.00

or 0.5% of $55,000.00 = $275.00 then add 1% of the remaining $165,000 would be $1650.00 for a total of $1925.00....same answer!

 


Send E-mail to David Fysh at david@davidfysh.com

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