Land Transfer Tax Calculator
What is Land Transfer Tax Calculator
Land transfer tax calculator is a great tool to assist you to quickly determine how much taxes you have to pay upon purchasing a new residential property or changing ownership/title of the property to yourself. An important aspect of purchasing a new property is to determine all your closing cost, of which land transfer tax makes up a large portion of closing costs
How Land Transfer Tax is Calculated
According to ministry of finance, the Land transfer tax in Ontario is calculated as shown below. You can get more information about land transfer at ministry of finance website located at: https://www.fin.gov.on.ca/en/bulletins/ltt/2_2005.html
- amounts up to and including $55,000 is calculated at 0.5%
- amounts exceeding $55,000, up to and including $250,000 is calculated at 1.0%
- amounts exceeding $250,000, up to and including $400,000 is calculated at 1.5%
- amounts exceeding $400,000: is calculated at 2.0%
- amounts exceeding $2,000,000, where the land contains one or two single family residences is calculated at 2.5%.
Lets now look at an example. Let say that you are purchasing a home in Ottawa for $700,000. Your total land transfer tax is calculated as follow:
1) Multiply $55,000 by 0.5% (55,000 × 0.005) = $275
2) Multiply the amount exceeding $55,000 up to $250,000 by 1.0% (195,000 × 0.01) = $1,950
3) Multiply the amount exceeding $250,000 up to $400,000 by 1.5% (150,000 × 0.015) = $2,250.
3) Multiply the amount exceeding $400,000 up to $700,000 by 2% (300,000 × 0.02) = $6,000.
Thus your total land transfer tax is = $10,475.
This is how the total land transfer tax is calculated for all municipalities with exception of Toronto. In Toronto, in addition to Ontario land transfer tax, you also have to pay municipal land transfer tax which is the equivalent of the provincial land transfer tax. Thus if the above home was located in Toronto, the total land transfer tax payable would be $20,950 ($10,475 * 2)