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Land Transfer Tax Calculator 2020
Don’t let taxes catch you by surpriseWhat is land transfer tax?
When buying a home, many people overlook the significant cost of land transfer tax. When you acquire a property (and the land it rests on), you must pay a tax to the government after the transaction closes. The amount paid depends on the value of your property, but almost always forms the largest portion your closing costs.
Our calculator shows you how much you can expect to pay and why. If you are a first-time home buyer, we show you how much you can expect to save in government-sponsored rebates, reducing the impact of your land transfer fees.
Purchase Price
$ 500,000
| Provincial | $ | 6,475.00 | |
|---|---|---|---|
| + | Municipal | $ | 6,475.00 |
| − | Rebate | $ | 8,475.00 |
| = | Total Tax | $ | 4,475.00 |
Note: In addition to the tax calculated above, the city of Toronto levies an administration fee of $75 + HST.
Lower than the Major Banks
* For mortgages of at least $500,000 with down payment under 20%.
Rates provided by Mortgauge Corporation. WOWA assumes no liability for the accuracy of information presented.
† For mortgages of at least $500,000 over a 25-year amortization period.
Detailed Breakdown
Ontario Land Transfer Tax
Ontario levies a land transfer tax by applying a tax-bracket system to your property’s purchase price. The full breakdown of your provincial land transfer tax is shown below.
| Tax Bracket | Marginal Tax Rate | Marginal Purchase Price | Marginal Tax | ||||
|---|---|---|---|---|---|---|---|
| First $55,00055k | 0.5% | × | $ | 55,00055k | = | $ | 275275 |
| $55,00055k to $250,000250k | 1.0% | × | $ | 195,000195k | = | $ | 1,9501.95k |
| $250,000250k to $400,000400k | 1.5% | × | $ | 150,000150k | = | $ | 2,2502.25k |
| $400,000400k to $2,000,0002.00m | 2.0% | × | $ | 100,000100k | = | $ | 2,0002.00k |
| Over $2,000,0002.00m | 2.5% | × | $ | 00 | = | $ | 00 |
| Total Tax | $ | 6,4756.48k | |||||
Starting January 1, 2017, Ontario offers a land transfer tax refund of up to $4,000 for first-time home buyers. Since your provincial tax exceeds the rebate limit, your provincial rebate is capped at $4,000.
Toronto Land Transfer Tax
Toronto levies an additional land transfer tax equal in value to the Ontario land transfer tax. You will also need to pay an administration fee of $75 + HST.
Toronto offers a land transfer tax refund of up to $4,475 for first-time home buyers. Since your municipal tax exceeds the rebate limit, your municipal rebate is capped at $4,475.
Frequently Asked Questions
Note: The following information applies to Ontario only.
Am I a first-time home-buyer?
To qualify as a first-time home buyer, you must meet all of the following criteria:
- You must be at least 18 years of age.
- You must be a Canadian citizen or permanent resident.
- You must occupy the property as your principal residence within nine months of purchase.
- You cannot have owned a home, anywhere in the world, at any time.
- Your spouse/common-law partner cannot have owned a home while they were your partner.
How do I claim a rebate?
You may obtain an immediate refund at the time of registration.
- If you are registering electronically, you must fill Statement 9028 and 9029 under the Explanation tab of the land transfer tax section.
- If you are filing on paper, you must submit an Ontario Land Transfer Tax Refund Affadavit at the Land Registry Office.
I did not claim a rebate at the time of registration. Am I still eligible?
Yes, if you act quickly. You may claim your rebate at any point within 18 months of purchase.
Can I get a rebate if I am not a citizen or permanent resident of Canada?
Yes, in certain cases. After the purchase of a property, you have an 18-month window following registration to obtain a rebate. If you gain citizenship or permanent residency during this period, you can claim the full rebate amount.
What is land speculation tax?
The Non-Resident Speculation Tax (NRST), also known as land speculation tax, is a 15% tax on residential property in areas near Toronto.
The tax only applies to individuals who are not citizens or permanent residents of Canada. The specific region involved is known as the Greater Golden Horseshoe region, shown below.
For more information, visit the official government website.
* Rates shown are on approved credit and subject to change without notice.