What is Land Transfer Tax?

Friday Jun 07th, 2019

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What is Land Transfer Tax?

When you buy land or an interest in land in Ontario, you pay Ontario's land transfer tax. Land includes, but is not limited to, any buildings, buildings to be constructed, and fixtures (such as light fixtures, built‑in appliances and cabinetry). In addition, for certain transfers of land within the Greater Golden Horseshoe Region, a 15% Non‑Resident Speculation Tax (NRST) may apply.

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

First-Time Homebuyers

If you are a first‑time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.

Other land taxes

The Non-Resident Speculation Tax (NRST) is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

Harmonized sales tax (HST)

The harmonized sales tax (HST) applies to newly constructed homes or substantially renovated homes, but does not apply to resale homes. Buyers of new homes may receive a rebate of up to $24,000 of the provincial portion (8%) of the HST.

Online Calculator

Click here to use the Toronto Real Estate Board online calculator to find out what amount you would have to pay based on a purchase price.

Source: Ministry of Finance


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