Ontario Land Transfer Tax
This is not a tax advice. The information provided here are based on the Ontario Government Land Transfer Tax publications.
Generally, if you are a buyer purchasing and interest in land in the province of Ontario (If you are buying a property, vacant land, land with improvements i.e. building and fixtures) you must pay and Land Transfer Tax. Tax is payable even if the ownership is not transferred in a Land Registry Office.
The amount of land transfer tax is calculated based on the purchase price or fair market value. Purchase price is the amount agreed to transfer the ownership of the land. This includes the payment and any mortgages whether or not assumed by buyer.
Other Types of Land Taxes
Municipalities impose a yearly municipal property tax on land within the municipality. If you are have questions about municipal property tax, you should contact the municipality in which the land is located. If the land is in an unorganized territory (an area without municipal organization) provincial land tax may apply rather than municipal property tax.
Toronto Land Transfer TaxThe city of Toronto is charging its own land transfer tax on properties purchased in Toronto. This tax is in addition to the Ontario land transfer tax. If you are buying a home, condo or commercial property in Toronto, you must take Toronto land transfer tax into account for your closing costs. Your lawyer will be able to determine the amount of tax you will be paying for both Ontario and Toronto.
If you are making a land purchase in the City of Mississauga, Brampton, Oakville, Burlington is not paying an additional land transfer tax. The only land transfer tax is the Ontario portion.
Use this land transfer tax calculator to determine the amount of taxes you will be paying. If the property you are buying is located in Toronto, you must select both boxes.
If you are a qualifying first time buyer, you receive a $2000 credit towards your Ontario Land Transfer Tax portion.
First time buyers are also exempt for the first $400,000 of the Toronto Land Transfer Tax.
For this and other topics related to real estate contact:
Broker Of Record
CITYGATE Realty Inc., Brokerage
Mississauga Real Estate brokerage
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