In general, if you buy property or an interest in property in Ontario, you must paythe Ontario Land Transfer Tax (OLTT). If the land in question is in Toronto, you must pay the Toronto Land Transfer Tax (TLTT) on top of the OLTT. Both taxes apply regardless of whether or not the transfer is registered at an Ontario Land Registry office.
Ontario Land Transfer Tax is calculated as follows:
- 0.5% of property value from $0 – $55,000
- 1% of the amount exceeding $55,000 – $250,000
- 1.5% of the amount exceeding $250,000 – $400,000
- 2% on amounts exceeding $400,000
Toronto Land Transfer Tax is calculated as follows:
- 0.5% of property value from $0 – $55,000
- 1% of the amount exceeding $55,000 – $400,000
- 2% of amounts exceeding $400,000
Exemptions
Exemptions from land transfer tax are limited, however main exemptions include:
- particular transfers between spouses
- certain transfers from individuals to their family business/corporation
- certain transfers of farmed land between family members
- certain transfers of a life lease from a non-profit organization/charity.
NOTE: First time Homebuyers may receive a discount of $2000 off the total amount of Land Transfer Tax.
