What You Need To Know About Land Transfer Taxes

Paula Tysoski
Monday, November 8, 2021
What You Need To Know About Land Transfer Taxes
Land Transfer Tax (LTT) is a tax that buyers pay when purchasing real estate in Ontario. Sellers do not pay LTT when they sell.  
The amount is calculated based on the property type, for a residential property the calculation is here:  
  • amounts up to and including $55,000: 0.5% 
  • amounts exceeding $55,000, up to and including $250,000: 1.0% 
  • amounts exceeding $250,000, up to and including $400,000: 1.5% 
  • amounts exceeding $400,000: 2.0% 
  • amounts exceeding $2,000,000, where the land contains one or two single family residences:?2.5% 
You may want to search land transfer tax calculator on your online banking or from an online mortgage rate provider. Buyers in GTA will pay LTT twice, once to the Province and once to the Municipality. Buyers in Paris, Brantford and Brant County, will only pay the Provincial side of LTT. 

First Time Buyers and Land Transfer Tax  
Eligibility for the First Tim Buyers LTT rebate includes:   
  • Be 18 years old or older 
  • You and your spouse have never owned a home or an interest in a home anywhere in the world - this includes purchase, gift or inheritance  
If you qualify for the LTT rebate, the amount of the refund is calculated on a maximum purchase of $368,000 for a total rebate of $4000. If you purchase a home more than the maximum amount, your total rebate is capped at $4000.  
 
What happens if a parent is purchasing the house with you?  
You would be entitled to 50% of the value of the home to claim. * 

What happens if your partner has owned a home but you have not?  
You would be entitled to claim 50% of the value as long as you are not spouses (as per section 29 of the Family Law Act) when you purchase the home. * 
 
* Rules change from time to time, and this is intended to be an overview of the top questions our clients ask. Please see the Ministry of Finance Ontario website for complete details.

 

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