Land Transfer Tax
Real Estate Purchasers in Ontario add Land Transfer Taxes to their list of closing costs. Land transfer taxes are levied on properties that are changing hands, are the responsibility of the purchaser.
Land Transfer Tax Rebate – First Time Home Buyer Exemption
Land transfer Tax rebate is a permanent program allowing a rebate of provincial land transfer tax otherwise payable up to $2,000 for all agreements of Real Estate purchase and sale. Providing a full land transfer tax exemption for home purchase values up to $227,500.
Eligibility of the buyer:
- must be at least 18 years old
- must be first time home buyer and occupy the home as a principle residence no later than 9 months after the date of the conveyance
- must never have owned, or had any ownership interest in, an eligible home anywhere in the world while he/she was a purchaser's spouse or same sex partner
Ontario's Land Transfer Tax Formula:
- Up to $55,000 X 0.5 % of total property value
- From $55,000 to $250,000 X 1 % of total property value, less $275
- From $250,000 to $400,000 X 1.5 % of total property value, less $1525
- From $400,000 up X 2 % of total property value, less $ 3525.
