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Ontario land tranfer tax ( OLTT)

When you buy land or an interest in land in Ontario, you pay Ontario’s land transfer tax. Land includes, but is not limited to, any buildings, buildings to be constructed, and fixtures (such as light fixtures, built‑in appliances and cabinetry). In addition, for certain transfers of land, a 25 per cent Non‑Resident Speculation Tax (NRST) may apply.

The OLTT is typically paid by the purchaser of a property, although in some cases it may be paid by the vendor.

The OLTT is calculated based on the purchase price of the property, and is calculated at a progressive rate. The current rates are:
a. 0.5% on the first $55,000
b. 1% on the portion of the value between $55,000 and $250,000
c. 1.5% on the portion of the value between $250,000 and $400,000
d. 2% on the portion of the value over $400,000

Yes, there are exemptions and rebates available for certain groups, including first-time homebuyers, farmers, and certain charitable organizations. There are also rebates for properties that are subject to the Non-Resident Speculation Tax (NRST)

The OLTT is typically paid at the time of closing, along with any other closing costs. It can be paid by cash, cheque, or through a lawyer’s trust account.

If the OLTT is not paid, the property may not be transferred to the new owner. Additionally, the purchaser may be subject to penalties and interest charges.

The provincial rebate allows eligible buyers to get a refund of up to $4000 for their land transfer taxes. As a result, first-time homebuyers purchasing homes valued at around $370,000 or less will not have to pay land transfer taxes

What is land transfer tax?

When calculating the total cost of buying a home, land transfer tax (LTT) is frequently disregarded. Except for Alberta and Saskatchewan, all provinces impose a much smaller transfer fee rather than a land transfer tax. In the majority of provinces, the tax is determined by taking the asking price as a close approximation of the property value. However, Toronto residents must also pay an additional municipal tax.

 

Ontario, British Columbia, Prince Edward Island, and the City of Toronto all provide first-time homebuyers with land transfer tax rebates to help with the cost.

How to calculate land transfer tax

Your property’s purchase price will determine how much in land transfer taxes you will pay. The rates of land transfer taxes are set independently by each province and some municipalities. If you’re interested in learning how to calculate land transfer tax in your area, use the calculator above or continue reading.

Land transfer taxes in Ontario

The rates of the Ontario land transfer tax were last changed in 2017. The lower four price brackets’ marginal rates and cutoffs remained constant, but a new $2 million tax bracket was added. Additionally, a 15% non-resident speculation tax was added for the Greater Golden Horseshoe Region.

Purchase Price of Home
Marginal Tax Rate
First $55,000
0.5%
$55,000.01 to $250,000.00
1.5%
$250,000.01 to $400,000.00

20%

$400,000.01 to $2,000,000.00
2.0%
Over $2,000,000
2.5%

First time homebuyers rebate eligibility in cambridge and kitchener ontario

  • You must be a Canadian citizen or permanent resident of Canada.
  • You must be 18 years or older.
  • You must occupy the home within nine months of purchase.
  • You cannot have owned a home or interest in a home anywhere in the world.
  • Your spouse cannot have owned a home while being your spouse (but may be a previous home owner).
  • If the home is newly constructed, it must be eligible for home warranty.
  • Homebuyers must apply for the refund within 18 months of purchase.

Application


Taxpayers can claim an immediate refund when registering the land transfer papers and paying their taxes. Tax rebate application forms are available online for home buyers registering electronically or on paper at government offices.


If the rebate is not claimed at the time of registration, the full tax is paid and a refund claim can be made to the Ministry of Finance within 18 months. Information required for the application include:


  • A completed Ontario Land Transfer Tax Refund Affidavit for First Time Purchasers of Eligible Homes
  • A copy of the registered land transfer deed
  • A copy of the agreement of purchase and sale
  • A copy of a document that provides proof of residence, such as a driver’s license, telephone/cable bills, etc.

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