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.
Note: In addition to the tax calculated above, the city of Toronto levies an administration fee of $75 + HST.
* 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.
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|
|$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|
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 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.
Note: The following information applies to Ontario only.
To qualify as a first-time home buyer, you must meet all of the following criteria:
You may obtain an immediate refund at the time of registration.
Yes, if you act quickly. You may claim your rebate at any point within 18 months of purchase.
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.
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.