Land Transfer Tax

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Purchasers in most large Canadian centres will add Land Transfer Taxes to their list of closing costs. These taxes, levied on properties that are changing hands, are the responsibility of the Purchaser and depending on where you live, taxes can range from a half a percent 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 in this example is $2,375.00.

The following chart illustrates Land Transfer Taxes:

ONTARIO: Provincial Land Transfer Tax (PLTT)

Up to $55,000.00 X .5 % of total property value
From $55,000.01 to $250,000.00 X 1 % of total property value
From $250,000.01 to $400,000.00 X 1.5 % of total property value
From $400,000.01 up X 2 % of total property value

TORONTO: Municipal Land Transfer Tax (MLTT)

Up to and including $55,000.00 X .5 % of total property value
From $55,000 .01 to $400,000.00 X 1 % of total property value
From $400,000.01 up X 2 % of total property value

Since February 1st, 2008, buyers of homes in the City of Toronto pay both the Ontario and Toronto Land Transfer Taxes.


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