Calculating Land Transfer Taxes

May 20, 2008 by David Feld

NEW! City of Toronto Land Transfer Tax

On October 22, 2007, Toronto City Council approved a new land transfer tax which takes effect on February 1, 2008.

(a) ½ of 1% (or $5 per $1000) to $55,000, and
(b) 1% (or $10 per $1000) over $55,000 to $400,000 and
(c) 2% (or $20 per $1000) over $400,000

Use our on-line tool to help calculate land transfer tax for your purchase.

Land Transfer Tax (LTT) is a tax charged by Ontario to buyers of real estate at the time a deed is tendered for registration with the Land Titles Office. It is sometimes called the "Welcome Tax".

LTT is calculated as a percentage of the purchase price of the property as follows:

(a) ½ of 1% (or .05% or $5 per $1000) to $55,000, and
(b) 1% (or /1% or $10 per $1000) over $55,000 to $250,000 and
(c) an additional .5% for all values over $150,000 but under $450,000

An easy rule of thumb for properties under $250,000 is to take 1% of the value of the property and substract $275 (to account for the .5% reduction in tax for the first $55,000 of value). For example, if the property is worth $100,00 the tax would be calculated as follows:
$100,00 x .01 = $1,000
less (275)
equals LTT of $725

Use our on-line tool to help calculate land transfer tax for your purchase.

There are some situations that involve different calculations, so be sure to consult with your legal advisor to get the proper calculation.

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Calculating Land Transfer Taxes

On October 22, 2007, Toronto City Council approved a new land transfer tax which takes effect on February 1, 2008. Use our tools to help you calculate your transfer tax.

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