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The Government of Ontario applies a Land Transfer tax for land that is being transferred from one owner to another . This amount is payable by the purchaser upon registration of the Transfer/Deed. If a first-time purchaser is buying a new home from a registered builder, the first $2,000 in provincial Land Transfer tax is waived.
Click below to automatically calculate your Ontario Land Transfer Tax on residential purchases. City of Toronto Land Transfer Tax is extra, as shown below.
Calculations for the Ontario Land Transfer Tax are based on the following:
- The first $55,000 of the purchase price is taxed at a rate of 0.5%,
- $ 55,000 up to and including $250,000 is taxed at an additional rate of 1.0%
- $250,000 up to and including $400,000 is taxed at an additional rate of 1.5%
- over $400,000 on one- or two-family residential properties is taxed at an additional rate of 2%.
(This amount is not applicable to industrial or commercial properties. The tax rate is 1.5% for a purchase price above $250,000)
example: The purchase price of a single-family residential property = $650,000.
| 55 000 x .005 |
= 275 |
(the first 55 000 is taxed at .5%)
+ plus |
| 195 000 x .01 |
= 1950 |
(the next 195 000 is taxed at 1%)
+ plus |
| 150 000 x .015 |
= 2250 |
(the next 150 000 is taxed at 1.5%)
+ plus |
| 250 000 x .02 |
= 5000 |
(the last 250 000 is taxed at 2%)
|
| 650 000 total tax |
= $9475 |
Calculate City of Toronto Land Transfer Tax
New 2008+ Toronto Land Transfer Tax Formula
- Purchase price x 0.5 % on the first $55,000
- Purchase price x 1.0 % on the next $345,000
- Purchase price x 2% on the entire portion over $400,000
The new Toronto Land Transfer Tax will take effect on purchases that are signed after Dec. 31, 2007 and close after Feb. 1, 2008.
Help for First Time Home Buyers
RRSP Program
If you are a first time buyer, and have assets invested in an RRSP, you can withdraw up to $20,000 to apply towards the purchase of a home. You are considered a first time home buyer if you have not lived in a home owned by yourself or your spouse in the last five years.
In addition to being a first time home buyer, you must have entered into a written agreement to buy or build a home and intend to occupy that home as a principal residence. Any funds you wish to withdraw under the program must have been in your RRSP for at least 90 days. If you have less than $20,000 in an RRSP, its not too late to save money. You can make a contribution to your RRSP early in the year before the RRSP deadline. You can then receive a tax refund and 90 days later withdraw the RRSP contribution for use in buying a home.
Once you have applied the RRSP funds to the purchase of your home, you are required to pay back the RRSP over 15 years. Ordinarily, you will deposit 1/15 of the amount withdrawn back into your RRSP in each of the 15 years following your home purchase. If you fail to repay an amount required in any given year, then that amount will be included in your taxable income for the year. |