Land Transfer Tax
Purchasers in most large Canadian centres can add Land
Transfer Taxes to their list of closing costs.
Unless you live in Alberta, Saskatchewan, or rural Nova
Scotia, land transfer taxes (or property purchase tax) are a
basic fact of life. These taxes, levied on properties that
are changing hands, are the responsibility of the purchaser.
Depending on where you live, taxes can range from a half a
per cent to two per cent of the total value of the property.
If you purchase a property for $260,000 in Ontario, for
example, .5 per cent is charged on the first $55,000, 1 per
cent is charged on $55,000 - $250,000, while the $250,000 -
$400,000 range is taxed at 1.5 per cent. Your total tax
bill? $2,375.00.
Land Transfer Tax (Ontario Calculations):
Add the following together and you'll be able to determine
what your Land Transfer Tax will be:
Up to $55,000 X .5 %, plus...
From $55,000 to $250,000 X 1 %, plus...
From $250,000 to $400,000 X 1.5 %, plus...
From $400,000 up X 2 % of total property value
