North York Land Transfer Tax Calculator
Calculate what you'll need to pay in land transfer tax in North York.
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 North York Land Transfer Tax
Purchasing a home is an exciting milestone in anyone's life, but navigating the financial aspects of real estate transactions can be overwhelming. One crucial consideration for homebuyers in Ontario, is Land Transfer Tax (LTT). This provincial tax (and sometimes also municipal tax) is applied on the transfer of property ownership, impacting both residential and commercial transactions. Understanding how the LTT works, its calculation method, exemptions, and potential implications is vital to avoid surprises and make informed decisions.
Types of Land Transfer Tax
There are two types of LTT: one collected by the provincial government, and one collected on the municipal level. Currently, only the City of Toronto collects municipal LTT, but all properties in Ontario are subject to the provincial LTT, subject to certain exemptions.
Ontario Land Transfer Tax
How to calculate Ontario Land Transfer Tax
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.
Property purchase price | Marginal tax rate |
First $55,000 | 0.5% |
Amount exceeding $55,000 up to $250,000 | 1.0% |
Amount exceeding $250,000 up to $400,000 | 1.5% |
Amount exceeding $400,000 up to $2,000,000 | 2.0% |
Amount exceeding $2,000,000 | 2.5% |
Example calculation of Ontario Land Transfer Tax
Assuming a property is purchased for $500,000, the LTT calculation would be:
Calculation | Land transfer tax |
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 | $6,475 |
Ontario Land Transfer Tax rebate
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.
Toronto Land Transfer Tax
Currently, the only Ontario municipality that collects a separate Land Transfer Tax amount is the City of Toronto.
How to calculate Toronto Land Transfer Tax
The Toronto Municipal Land Transfer Tax (MLTT) is calculated based on the purchase price of a property within the city of Toronto and also operates on a marginal taxation system. The MLTT rates are in addition to the provincial Land Transfer Tax rates that apply to all of Ontario.
Property purchase price | Marginal tax rate |
First $55,000 | 0.5% |
Amount exceeding $55,000 up to $250,000 | 1.0% |
Amount exceeding $250,000 up to $400,000 | 1.5% |
Amount exceeding $400,000 up to $2,000,000 | 2.0% |
Amount exceeding $2,000,000 up to $3,000,000 | 2.5% |
Amount exceeding $3,000,000 up to $4,000,000 | 3.5% |
Amount exceeding $4,000,000 up to $5,000,000 | 4.5% |
Amount exceeding $5,000,000 up to $10,000,000 | 5.5% |
Amount exceeding $10,000,000 up to $20,000,000 | 6.5% |
Amount exceeding $20,000,000 | 7.5% |
Example calculation of Toronto Land Transfer Tax
Assuming a Toronto property is purchased for $500,000, the MLTT calculation would be:
Calculation | Land transfer tax |
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 | $6,475 |
This amount would be in addition to the Ontario Land Transfer Tax, so the total LTT paid would be $12,950 on a $500,000 property in Toronto.
City of Toronto boundaries
The Toronto Land Transfer Tax is charged on all home purchases east of Mississauga, west of Pickering and Markham, and south of Steeles Avenue. This includes Etobicoke, North York, Scarborough, Old Toronto, York (not to be confused with the Regional Municipality of York) and East York.
Toronto Land Transfer Tax rebate
First-time homebuyers in Toronto are eligible for a maximum tax rebate of $4,475 on the Municipal Land Transfer Tax (MLTT). 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.
Navigating Land Transfer Tax
Navigating the complexities of Land Transfer Tax in Ontario is essential for homebuyers and investors alike. By understanding how the tax is calculated, the available exemptions, and its implications on real estate transactions, you can make informed decisions and plan your finances accordingly. Engaging a real estate lawyer is an incredibly important part of this process. Not only can they help you to understand the application of LTT to your particular situation, but they also help to facilitate its payment.
