Land Transfer Tax
Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home. All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead levy a much smaller transfer fee. In most provinces the tax is calculated as a % of property value, using asking price as a close estimate. Home buyers in Toronto, unfortunately, also incur an additional municipal tax. However, Ontario, British Columbia, Prince Edward Island and the city of Toronto offer land transfer tax rebates for first-time home buyers to offset the unwelcome cost.
Ontario Land Transfer Tax – To Calculate your land transfer taxes simply use the following calculation:
Purchase Price of the Home- $350,000
ON THE FIRST $55,000 multiply by 0.5% (55,000 x 0.5% = $275)
ON $55,000 – $250,000 multiply by 1.0% (195,000 x 1.0% = $1,950)
ON $250,000 – $400,000 multiply by 1.5% (100,000x 1.5% = $1,500)
ON $400,000 and over multiply by 2.0% (not applicable for this calculation)
($275 + $1,950 +$1,500 = $3,725) Land Transfer Tax Amount Payable ($55,000 + $195,000 + $100,000 = $350,000) Purchase Price of the Home. Ontario First-Time Home Buyer Land Transfer Tax Rebate.The Ontario land transfer tax rebate is equal to the full value of the land transfer tax up to a maximum of $2,000
* The buyer must be older than 18 years
* The buyer must occupy the home within nine months of purchase
* The buyer cannot have owned a home anywhere in the world
* The buyer’s spouse cannot have owned a home while being your spouse
If you are purchasing a new home, it must be eligible for home warranty Based on Ontario land transfer tax rates, the rebate will cover the fully taxed amount on houses up to $227,500. For houses over $227,500, home buyers will receive the maximum $2,000 rebate. To obtain this refund, you need to apply within 18 months after the purchase of the home.
RE/MAX JAZZ Inc. Brokerage
21 Drew St., Oshawa, Ontario