Purchasers of property in Ontario must pay Land Transfer Tax, which is calculated based on the value of the home. Outside of Toronto, land transfer tax is calculated as follows:
- 0.5% on the first $55,000 ($275)
- 1% from $55,000 to $250,000
- 1.5% from $250,000 to $400,000
- 2.0% on the amount over $400,000
For example, on a $325,000 purchase, the Land Transfer Tax would be:
- 0.5% x $55,000 = $ 275
- 1.0% x $195,000 = $1,950
- 1.5% x $75,000 = $1,125
- Land Transfer Tax payable = $3,350
Land Transfer Tax Exemption
You may be exempt from paying up to $2,000 of Land Transfer Tax if you or your spouse have never previously owned a home or an interest in a home anywhere in the world.