Burlington Land Transfer Tax Calculator
Calculate what you'll need to pay in land transfer tax in Burlington.
Frequently asked questions
Land Transfer Tax (LTT) is a tax that is paid by the buyer of a property at the time of purchase and is calculated based on the purchase price of the property according to a specific formula set out by the province (and sometimes municipality) that the property is located.
The buyer of any Ontario property, whether it’s vacant land, a house, a farm, a cottage, or a condo, is required to pay land transfer tax to the provincial government. In Toronto, buyers are required to pay an additional municipal land transfer tax. There is no land transfer tax payable by the seller.
First-time homebuyers may be eligible for a refund of up to $4,000 of the Ontario LTT. To qualify, you must:
- be at least 18 years of age,
- have never owned a home before,
- not be married to or in a common-law relationship with a current home-owner,
- occupy the property within 9 months of the closing date
- and be a Canadian citizen or permanent resident.
If you are purchasing the property with another person who is not a spouse or common-law partner, and that co-purchaser is not a first-time homebuyer, you will only receive a rebate proportionate to your ownership share.
The Ontario Land Transfer Tax (LTT) provides certain other exemptions for eligible homebuyers. Here are the most common other exemptions:
- Family transfer exemption: Ontario LTT does not apply if the transfer of land is between spouses, or if the property is transferred as a gift to children where there is no mortgage on title.
- Certain transfers of farmed land: A person who acquires land that is primarily used for farming purposes may be exempt from paying Ontario LTT if the acquirer is a Canadian citizen or permanent resident, and the land will continue to be used for farming.
- Certain transfers of charity-owned land: Ontario LTT does not apply to transfers of land to registered charities.
- Crown land transfers: Ontario LTT does not apply to transfers of land from the Crown (government) to any other person or entity.
It's important to note that these exemptions are subject to specific eligibility requirements and conditions, and you may need to provide proof of eligibility when claiming the exemption.
A guide to Burlington Land Transfer Tax
What is Land Transfer Tax?
Land Transfer Tax (LTT) is a tax that is paid by the buyer of a property at the time of purchase and is calculated based on the purchase price of the property according to a specific formula.
Does the seller pay Land Transfer Tax?
No, only the buyer of a property pays Land Transfer Tax.
Who collects Land Transfer Tax?
There are two types of Land Transfer Tax: one collected by the provincial government, and one collected on the municipal level. Currently, only the City of Toronto collects municipal Land Transfer Tax, but all properties in Ontario are subject to the provincial Land Transfer Tax, subject to certain exemptions.
Are there any exemptions to paying Land Transfer Tax?
The Ontario Land Transfer Tax (LTT) provides certain exemptions for eligible homebuyers. Here are some of the common exemptions:
First-time homebuyer rebate: Eligible first-time homebuyers may be eligible for a refund of up to $4,000 of the Ontario LTT. To qualify, the buyer must be at least 18 years of age, have never owned a home before, and be a Canadian citizen or permanent resident.
Family transfer exemption: Ontario LTT does not apply if the transfer of land is between spouses, or if the property is transferred as a gift to children or other family members where there is no mortgage on title.
Certain transfers of farmed land: A person who acquires land that is primarily used for farming purposes may be exempt from paying Ontario LTT if the acquirer is a Canadian citizen or permanent resident, and the land will continue to be used for farming.
Certain transfers of charity-owned land: Ontario LTT does not apply to transfers of land to registered charities.
Crown land transfers: Ontario LTT does not apply to transfers of land from the Crown (government) to any other person or entity.
It's important to note that these exemptions are subject to specific eligibility requirements and conditions, and you may need to provide proof of eligibility when claiming the exemption.
Can I gift property to someone in order to avoid them paying Land Transfer Tax?
Not usually. Unless the person is a spouse of the current owner, tax will be calculated based on the value of any outstanding mortgages being assumed by the person receiving the property. If there are no outstanding mortgages, and the person receiving the property is not a family member, the tax will be based on the fair market value of the property.
How is provincial Land Transfer Tax calculated?
The formula for calculating Land Transfer Tax (LTT) in Ontario depends on the purchase price of the property (and the value of any other consideration being provided by the buyer to the seller) and operates on a marginal taxation system.
For residential properties, the LTT calculation is as follows:
For the first $55,000 of the purchase price: 0.5%
For the amount exceeding $55,000 up to $250,000: 1.0%
For the amount exceeding $250,000 up to $400,000: 1.5%
For the amount exceeding $400,000: 2.0%
For the amount exceeding $2,000,000: 2.5%
For example, if the purchase price of a property is $500,000, the LTT calculation would be:
0.5% of $55,000 = $275
1.0% of ($250,000 - $55,000) = $1,950
1.5% of ($400,000 - $250,000) = $2,250
2.0% of ($500,000 - $400,000) = $2,000
Total LTT = $6,475
For commercial properties, the LTT calculation is a bit different. The LTT rate is a flat 1.5% on the entire purchase price.
So should I try to make my offer on a residential property just under $400,000 to avoid bumping up to a 2.0% Land Transfer Tax amount?
No, the marginal taxation system does not work that way, although this is a common misconception.
Whether your purchase price is $399,999 or $400,001, the tax will work out to be about the same. This is because each portion of your purchase price is taxed at a different rate - the overall purchase price is not taxed at one percentage.
We’ll illustrate with the chart below:
Portion of purchase price | Tax rate | With a $399,999 purchase price | With a $400,001 purchase price |
The first $55,000 | 0.5% | $275 | $275 |
The amount exceeding $55,000 and up to $250,000 | 1.0% | $1,950 | $1,950 |
The amount exceeding $250,000 and up to $400,000 | 1.5% | $2,249.99 | $2,250 |
The amount exceeding $400,000 | 2.0% | $0 | $0.02 |
Total |
| $4,474.99 | $4,475.02 |
As you can see, the difference in LTT is only 3 cents.
How is Municipal Land Transfer Tax calculated?
Currently, the only Ontario municipality that collects a separate Land Transfer Tax amount is the City of Toronto.
