When you acquire land or a property sitting on a piece of land, you have to pay land transfer tax to the Province and to the Municipality where the land or property resides. The Provincial and Municipal land transfer tax are both payable when the transaction closes.
Generally, land transfer tax is based on the amount paid for the land. Rates differ for each province and for each municipality. Your lawyer will include these taxes as part of the closing process.
TIP: If you’re a first-time home buyer in Ontario, don’t forget to claim your Ontario land transfer tax refund which is the amount equal to the land transfer tax payable up to a maximum of $4,000! Similarly, if you are a first-time home buyer in Toronto, you are also eligible to receive a rebate amount up to $4,475. Speak to your closing lawyer to confirm your eligibility for these rebates.
Below, you’ll find a handy Land Transfer Tax Calculator to help give you an idea of the amount of land transfer tax that is required for the property that you are interested in.
Ontario Land Transfer Tax Calculator
Zhen@PrimePropertiesTO.com
416-436-9436
RE/MAX Excel Advantage Realty
120 West Beaver Creek Rd, Richmond Hill, ON L4B 1L2
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