Toronto Land Transfer Tax Calculator
Toronto Land Transfer Tax
When you close on purchasing a home or condominium in Toronto, you must pay a Toronto land transfer tax. Use our land transfer ta calculator to estimate your land transfer tax, or see Toronto’s current applicable rates below.
Rates For Toronto Land Transfer Tax
The table below outlines the different tax rates that apply depending on the purchase price of your property.
Home’s Purchase Price | Land Title Transfer Fee | First-Time Homebuyer Rebate |
Beyond and including $55,000 | 0.5% | Complete tax rebate |
$55,000.01 to $250,000.00 | 1.0% | Complete tax rebate |
$250,000.01 beyond and including $400,000.00 | 1.5% | Complete tax rebate |
$400,000.01 beyond and including $2,000,000.00 | 2.0% | $4,475 maximum tax rebate |
Over $2,000,000 | 2.5% | $4,475 maximum tax rebate |
An Example On The Toronto Land Transfer Calculation
Consider you are buying a home for $500,000. As a homebuyer in Toronto, you must pay the provincial Ontario land transfer tax and the municipality Toronto transfer tax. Here is an example:
Ontario Land Transfer Tax
- $55,000 first marginal tax bracket × 0.50% marginal tax rate = $275
- $250,000 – $55,000 × 1.0% marginal tax rate = $1,950
- $400,000 – $250,000 × 2.0% marginal tax rate= $2,000
- $500,000 property value – $400,000 × 2.0% marginal tax rate = $2,000
Totaling all the above values is $6,475, which is the total Ontario land transfer tax.
The Toronto land transfer tax calculation is done similarly. Hence the value becomes $6,475.
So the total land transfer tax you must pay if you purchase a home in Ontario, Toronto is $6,475 + $6,475 = $12,950
Land Transfer Tax Rebates In Toronto
In Toronto, first-time homeowners are eligible for a municipal LTT tax rebate of up to $4,475. Depending on Toronto’s tax rate, the refund will cover the whole Toronto LTT for properties valued at less than $400,000. The rebate for the Toronto LTT is computed similarly to that for Ontario.
Eligibility Conditions Applicable For Toronto Land Transfer Tax Rebate
- You need to be a Canadian citizen or a permanent resident.
- You must be at least 18 years old.
- You must move in within nine months of purchasing.
- Your spouse shouldn’t have been a homeowner while she is your spouse. (Yet she can be a previous homeowner)
- If the house is newly constructed, it must be eligible for a home warranty.
- The homebuyer should apply for the tax refund 18 months after the purchase date.
Land Transfer Tax Refund In Ontario
The maximum tax refund applicable on the Ontario land transfer taxes for first-time homebuyers is $4000. Under Ontario’s land transfer tax rates, this rebate will cover the whole tax for residences up to $368,333. For properties priced above $368,333, purchasers will get the entire $4,000 refund and pay for the remaining LTT amount.
Application Process
When registering for the land transfer and paying the applicable tax, taxpayers may claim an instant refund. There are both electronic and paper registration forms for homebuyers.
If the refund is not claimed at the moment of registration, the entire tax has to be paid, and they need to file the reimbursement claim within 18 months with the Ministry of Finance. The needed application data includes:
- A completed Affidavit for Ontario land transfer tax Refund for First-Time Buyers of Eligible Properties.
- Registered land transfer deed copy
- A hard copy of the Purchase and Sale Agreement.
- A copy of a document proving residency, like a driver’s license, telephone/cable invoices, etc.