Land transfer tax (LTT)
Land Transfer Tax (LTT) is a provincial government tax imposed on a property whenever it is transferred from one owner to another. It is paid by the purchaser of the property when the transaction closes.
In Ontario, LTT is calculated as a percentage of the value of consideration on a property, using the following guidelines:
|Value of Consideration
|Up to and including $55,000||0.5%|
|Exceeding $55,000, up to and including $250,000||1%|
|Exceeding $250,000, up to and including $400,000||1.5%|
|Between $400,000 and $2,000,000||2%|
|Exceeding $2,000,000, where the land contains one or two single family residences||2.5%|
First-Time home Buyers
If you are a first-time home buyer, you may be eligible to receive a refund for at least some of the land transfer tax, up to a maximum of $4,000. In Ontario, this rebate is available to a purchaser who meets the following criteria:
- Must be a Canadian citizen or permanent resident of Canada;
- Must be 18 years of age or older;
- Must reside in the home within 9 months of date of purchase;
- Must not have previously owned a home; and,
- If married, the spouse cannot have owned a home at any time during the marriage.
For a home with a value of consideration that results in LTT above $4,000, home buyers will qualify for the maximum refund but will still owe the remainder of their land transfer tax. If a property is being purchased with a spouse, but only one person in the marriage qualifies as a first-time home buyer, then it is still possible to receive 50% of the rebate.