Articles & Information

Land Transfer Tax and HST

For residential properties, Ontario Land Transfer Tax (LTT) is calculated at a progressive rate on the value of the consideration paid (full purchase price) for the purchase of the property:

0.5% on the value up to $55,000.00;
1.0% on the value from $55,000.00 to $250,000.00;
1.5% on the value from $250,000.00 to $400,000.00;
2.0% on the value of consideration over $400,000.00.

Qualified first time home buyers may be able to take advantage of the Ontario government Land Transfer Tax Refund Program, which is an instant rebate at the time of registration of a deed to a first time buyer, up to $2,000.00. For more information on this program, please contact the Ontario Ministry of Finance at their web site: http://www.rev.gov.on.ca/en/refund/newhome/index.html.
Purchasers of new homes from builders who do not qualify for the Land Transfer Tax Refund should be aware that the “full purchase price” used as the basis for the calculation of land transfer tax is the purchase price NET of HST.

Purchasers should also be aware that Harmonized Sales Tax (HST) at the rate of 13% may be payable on the value of chattels included in the purchase price.

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