Land Transfer Tax

Land Transfer Tax (LTT) is a tax payable to the government which is calculated on the purchase price of the property in Ontario.  LTT is calculated as follows:

• The first $55,000 is taxed at 0.5%
• The next $195,000 is taxed at 1.0%
• The next $150,000 is taxed at 1.5%
• Any remaining amount is taxed at 2.0%

If you purchase a property in the City of Toronto, in addition to the provincial LTT, a municipal Land Transfer Tax (MLTT) also applies.  MLTT for a single family residence is calculated as follows:

• The first $55,000 of the purchase price is taxed at 0.5%
• The next $345,000 of the purchase price is taxed at 1.0%
• Any remaining amount of the purchase price is taxed at 2.0%

First time home buyers who have not owned property anywhere in the world and whose spouses have not owned property anywhere in the world may be eligible for a Land Transfer Tax credit.  A LTT credit of up to a maximum of $2,000.00 applies to eligible first time home buyers.  A MLTT credit of up to a maximum of $3,725.00 also applies to eligible first time home buyers purchasing in the City of Toronto.