Transactions involving residential real property in Ontario attract a land transfer tax. This tax is payable by the purchaser and is calculated on the purchase price. It is payable immediately at the time of registration of the Transfer/Deed of land to the purchaser and is based on the scale below which relates to the overall price of the property.
0.5% on the first $55,000 of the purchase price, plus
1.0% on the amount exceeding $ 55,000 up to and including $250,000, plus
1.5% on the amount exceeding $250,000 up to and including $400,000, plus
2.0% on the amount over $400,000
(Please note that for non-residential properties, such as industrial or commercial real estate the tax rate is 1.5% for any amount of purchase price over $250,000 regardless of the total price.)
The land transfer tax on a property transferred for $270,000.00 is calculated as $275.00 on the first $55,000.00 (0.5% x $55,000.00 = $275.00), plus $1,950.00 on the next $195,000.00 (1.0% x $195,000.00 = $1,950.00), plus $300.00 on the next $20,000.00 (1.5% x $20,000.00 = $300.00), for a total land transfer tax amount of $2,525.00.
Calculation of land transfer tax with respect to a purchase of a newly constructed home from a builder will be based on a price net of GST and if you are a qualified first time purchaser of a new home from a builder you may be eligible for a for the land transfer tax refund as below.