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Elliot Gordon Homes

How is Land Transfer Tax Calculated?

Provincial Land Transfer Tax (LTT)

  1. Provincial LTT is payable anywhere in Ontario (including Toronto)
  2. The provincial LTT for residential properties is calculated as follows:
    • 0.5% of the amount of the purchase price up to and including $55,000, plus
    • 1% of the amount of the purchase price between $55,000 and $250,000, plus
    • 1.5% of the amount of the purchase price between $250,000 and $400,000, plus
    • 2% of the amount of the purchase price above $400,000

Toronto Land Transfer Tax

  1. Toronto LTT is payable only for properties in the City of Toronto.
  2. Toronto LTT rebates are in addition to any provincial LTT rebate for which the buyer qualifies.
  3. The Toronto LTT for residential properties is calculated as follows:
    • 0.5% of the amount of the purchase price up to and including $55,000, plus
    • 1% of the amount of the purchase price between $55,000 and $400,000, plus
    • 2% of the amount of the purchase price above $400,000

Click HERE for a Land Transfer Tax calculator.

First-Time Buyer Rebate

First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum Provincial land transfer tax rebate for first-time buyers is $2,000 (equivalent to the Provincial LTT payable on a $227,500 property) and the maximum Toronto LTT rebate for first time buyers is $3,725 (equivalent to the Toronto LTT payable on a $400,000 property).

First-Time Buyer Eligibility

To be eligible as a first-time buyer for the provincial LTT rebate and/or Toronto LTT rebate,

  • The purchaser must be at least 18 years of age.
  • The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
  • The purchaser cannot have previously owned a home, or had any ownership
    interest in a home, anywhere in the world, at any time.
  • If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse. If this is the case, NO refund is available to either spouse. Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.