Applying The Land Transfer Tax To Your New Property

Understanding all the moving financial parts of a real estate transaction can be difficult. There are different financial resources available, different tax credits and different taxes to be paid.

At Blackburn Lawyers, our goal it to make your transaction proceed as smoothly as possible. Based in Richmond Hill, one of the ways we accomplish this for our clients is walking them through land transfer tax applications.

Ontario Land Transfer Tax for Residential Properties

To calculate the Provincial Land Transfer Tax payable for residential properties, add the following together:

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.

2.5% on amounts exceeding $2,000,000 where land contains one or two single family residences.

This sum is payable for any residential property purchased anywhere in Ontario.

Toronto Land Transfer Tax for Residential Properties

If you are purchasing a property in the City of Toronto, you must add to the Provincial Land Transfer Tax an amount for the Toronto Land Transfer Tax which additional amount can be determined as follows:

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.

2.5% on amounts exceeding $2,000,000 where land contains one or two single family residences.

Ontario Land Transfer Tax for Commercial Properties

To calculate the total LTT payable for Commercial properties, add the following together:

0.5% on the first $55,000

plus 1.0% of the amount from $55,001 to $250,000

plus 1.5% of the amount in excess of $250,001

For more information see http://www.fin.gov.on.ca/en/tax/ltt/

Require Further Assistance? Call Blackburn Lawyers Today

Arrange a meeting with our lawyers and get answers to all of your real estate questions. You can reach us by calling 289-809-0996.