Ontario Land Transfer Tax Calculator
As soon as you start planning to buy your dream home, you start planning on total cost and your affordability. One of the cost, people often overlooked is the closing cost. Among all these closing costs is the land transfer tax, which residents of Ontario are required to pay when they take possession of real property. It’s always the buyer who pays land transfer tax in Ontario when they buy a property, never the seller.
Be sure to speak with your mortgage broker or tax specialist to help you identify all the financial obligations that are associated with buying a home in Ontario. Contact me if you need to be in touch with my in-house experts.
First-time homebuyers don’t get demotivated. First-time homebuyers are eligible for a Ontario land transfer tax rebate. For those who are purchasing their very first home, there is a $4,000 maximum tax rebate on the land transfer tax in Ontario. Based on the rates associated with this tax, the rebate will cover the entire tax for properties up to a purchase price or value of $368,333.
First-time buyers of properties with a purchase price higher than $368,333 will receive the entire $4,000 tax rebate and will have to pay whatever remains on the balance of the land transfer tax.
For Buyers in Toronto, paying one land transfer tax wasn’t enough. Those who purchase real estate in Toronto will have to pay a municipal land transfer tax on top of the provincial tax. First introduced back in 2007 and implemented in 2008, the municipal land transfer tax for real estate transactions in the Toronto has become increasingly relied on as part of the city’s budget. First-time homebuyers are also eligible for a tax rebate. For the municipal land transfer tax, the rebate is a flat $3,725.