LAND TRANSFER TAX CALCULATOR
What is Land Transfer Tax – and Could You Be Exempt?
Land Transfer Tax, also known as “LTT”, is a fee charged when a piece of property changes hands and is registered to a new owner (unless you qualify for an exemption, ask us how). This tax is charged in all Canadian provinces, except for Alberta and Saskatchewan, who use their own system of lower transfer fees.
Land Transfer tax is a cost associated with homeownership that is often overlooked, so ensure that you read on or connect with our team of Toronto mortgage brokers to learn more about how much you may be charged on your real estate purchase.
Land Transfer Tax is one of the more significant fees associated with purchasing real estate. If you’re purchasing Toronto real estate specifically, you will not only incur a provincial tax, you’ll also be subject to an additional municipal tax. To help offset this cost, the City of Toronto does offer land transfer tax rebates for first time homebuyers.
As a first time home buyer, you will be able to receive a reduction in your land transfer tax bill for both your Toronto transfer tax, and your Ontario transfer tax. To learn more about the grants and incentives possible for you as a first time home buyer, head over to our First Time Home Buyer resource page
How to Calculate Land Transfer Tax
- Land transfer taxes are a percentage, calculated based on the purchase price of your property. Each province sets its own land transfer tax rates, as do some municipalities. Use our simple calculator above or connect with one of our certified mortgage advisors to find the land transfer tax based on your location. Read on to see how a manual calculation on Toronto real estate can be completed.
Ontario Land Transfer Tax
Land transfer taxes start at 0.5% for the first $55,000 in purchase price, and progressively increase all the way up to a transfer tax of 2.5% for each dollar of purchase price over $2,000,000. In total, your combined provincial and municipal transfer taxes will equal double what the taxes are in Toronto, with the same transfer tax rates in Ontario.
Ontario land transfer tax rates were last updated in 2017. This change introduced a $2 million+ tax bracket, while leaving the rates and for the lower price brackets unchanged. A non-resident speculation tax of 15% was also added for the Greater Toronto Area region.
Your Toronto land transfer tax is calculated using a marginal tax rate system, which is based on the purchase price of your home. The higher your purchase price, the more in land transfer taxes that you will incur.
In addition to Land Transfer Taxes, The Non-Resident Speculation Tax (NRST) is a 25 per cent tax on the purchase or acquisition of an interest in residential property located provincewide by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.
If you’re feeling overwhelmed by the details of Land Transfer Tax on a purchase here in Ontario – first, take a deep breath, and then call one of our top Toronto mortgage agents for assistance on navigating LTT and obtaining the top mortgage broker rates on the market.