How is Ontario land transfer tax calculated?
It's tiered, like income tax. Each slice of the price is taxed at its own rate:
| Portion of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2 million | 2% |
| Over $2 million | 2.5% |
The 2.5% band applies to homes with one or two single-family residences. Most homes in London and St. Thomas fall in the 2% band.
| Purchase price | Ontario land transfer tax | After the full first-time buyer refund |
|---|---|---|
| $400,000 | $4,475 | $475 |
| $500,000 | $6,475 | $2,475 |
| $600,000 | $8,475 | $4,475 |
| $700,000 | $10,475 | $6,475 |
| $850,000 | $13,475 | $9,475 |
Who gets the first-time buyer refund?
Ontario refunds up to $4,000, which covers the whole tax on a home around $368,000 or less. To qualify you must:
- Be at least 18.
- Be a Canadian citizen or permanent resident, or become one within 18 months of buying.
- Move into the home within nine months of buying.
- Never have owned a home, or a share in one, anywhere in the world.
- Have a spouse who didn't own a home while you were together.
Your lawyer normally claims it at closing, so the money never leaves your account. If you're buying with someone who isn't a first-time buyer, the refund is usually limited to your share of the home.
Buying from outside Canada?
Foreign nationals pay Ontario's Non-Resident Speculation Tax: 25% of the price, on top of land transfer tax, anywhere in Ontario. Some exemptions and rebates exist. Federal rules may also restrict non-Canadians from buying residential property. The calculator doesn't include either, so speak to a lawyer before you make an offer.
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