How is the Land Transfer Tax Calculated?
The tax is calculated on the value of the consideration for the transfer. In certain circumstances the Land Transfer Act (Act) deems the value of the consideration to be the fair market value of the land.
On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price (less a HST calculation, if the property purchased is a newly built home). The LTT is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:
- 0.5% on the first $55,000 of the purchase price, plus;
- 1.0% on the amount exceeding $55,000 up to and including $250,000, plus;
- 1.5% on the amount exceeding $250,000 up to and including $400,000, plus;
- 2.0% on the amount over $400,000
- (Please note: non-residential properties, such as industrial or commercial real estate, there is no 2% charge since the tax rate is 1.5% for any amount of purchase price over $250,000 regardless of the total price).
NOTE: If you are buying new from the builder, the Land Transfer Tax is calculated on a price which is net of the HST and therefore the Land Transfer Tax will be slightly less for a new home than for a resale home with the same price.
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看起来新房是要减去HST再算land transfer tax的