1. Land Transfer Tax : When buying a home in a major Canadian centre, you will often have to pay a tax referred to as land transfer tax, or sometimes as property purchase tax. The tax is usually calculated as a percentage of the purchase price, and the formula varies from province to province.
We have collected information and prepared a calculator to help you determine what the land transfer tax will be on the property you are looking at.
Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.
Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for $260,000 in Ontario, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.
2. Who is ELIGIBLE to receive REBATE and restrictions on amount claimed :
Restrictions on amount claimed: The following chart illustrates Land Transfer Taxes by province.
3. Ontario Land Transfer Tax :
4. "British Columbia" Land Transfer Tax
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5. "Manitoba" Land Transfer Tax :
6. "Quebec" Land Transfer Tax
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7. "Nova Scotia" Land Transfer Tax :
8. New/Additional Land Transfer Tax for "Toronto" : Toronto City Council has approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax. TREB worked very hard to oppose this tax and commends the efforts of REALTORS® on this issue. TREB took a strong position to oppose this tax as unfair in principle and refused to compromise. As a direct result of this strong position, City Council was forced to make a number of amendments to the City’s original proposal, including rebates for first-time buyers, a reduced rate, and grandfathering for existing transactions.
The City has not yet provided detailed information on administration or implementation issues. The following is based on currently available information. We will try our best to provide the updated information as and when they are made available from City Council.
9. What was approved by "City Council" : A second land transfer tax, on top of the provincial land transfer tax, at the following rates:
Residential: (An easy-to-use residential calculator is available here:
Commercial / Industrial / Etc.:
10. When does this take effect
: February 1, 2008
11. Are existing transactions grandfathered? : Yes. Any transactions where the purchaser and vendor have entered into an Agreement of Purchase and Sale for the property prior to December 31, 2007 will be rebated the full amount of the Toronto land transfer tax, regardless of the closing date. (Note: Media reports that closings must occur by Feb. 1, 2008 are inaccurate.) Teranet will be collecting the Toronto land transfer tax for the City of Toronto. Once the City’s grandfathering policy is reflected in Teranet’s collection system, grandfathered transactions will be exempt from the Toronto land transfer tax at the time of registration. Until that time, grandfathered transactions (Agreements signed on or before December 31, 2007), closing on or after February 1, 2008, will be charged the Toronto land transfer tax, which will then be rebated by the City of Toronto. Transactions closing before February 1, 2008 will not be charged the Toronto land transfer tax. The City has indicated that the necessary changes to Teranet’s system will be implemented in the “spring of 2008”. If your clients have concerns, they should check with their lawyer. Once the City of Toronto provides clarification, more information will be provided.
12. What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates before February 1, 2008?
: Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing before February 1, 2008 will not be required to pay the Toronto Land Transfer tax.
13. What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates on or after February 1, 2008?
: Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing on or after February 1, 2008 will be required to pay the full Toronto Land Transfer tax.
14. Where does this apply?
: The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.
15. Are first time home buyers affected?
: First time home buyers of new AND re-sale homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000). Teranet will be collecting the Toronto land transfer tax for the City of Toronto. Once the City’s first-time buyer policy is reflected in Teranet’s collection system, first-time buyer transactions will be exempt from the Toronto land transfer tax at the time of registration. Until that time, first-time buyer transactions will be charged the Toronto land transfer tax, which will then be rebated by the City of Toronto. The City has indicated that the necessary changes to Teranet’s system will be implemented in the “spring of 2008”. If your clients have concerns, they should check with their lawyer. Once the City of Toronto provides clarification, more information will be provided.
16. How can I get more information?
: More detailed information will be provided once it is made available by the City. If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338.
If you have questions, contact us by sending an Email or a phone call at (905)502-5800 and we will be happy to assist you.
17. Toronto Land Transfer Tax and Rebate?
: New Info Re. Toronto LTT Rebates Provided By City
December 14, 2007 -- The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect. Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below. According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following: More Information Complete details of the Toronto land transfer tax are available here or by calling the City of Toronto at 416-338-0338.Or you may contact me for any question related to this subject.
18. New!!! Ontario expands Land Transfer Tax Refund Program : As announced in the 2007 Ontario Economic Outlook and Fiscal Review, the government proposes to expand the Land Transfer Tax Refund Program to include first-time homebuyers of resale homes. This measure would be effective for agreements of purchase and sale entered into after December 13, 2007. As a result of this change, first-time homebuyers of resale homes would be able to receive a refund from the provincial government of up to $2,000 of the land transfer tax paid.
From $400,000 up X 2 % of total property value
