Understanding all the moving financial parts of a real estate transaction can be difficult. There are different financial resources available, different tax credits, and different taxes to be paid.
At Hallmark Attorneys LLP, our goal is to make your transaction proceed as smoothly as possible. Based in Richmond Hill, one of the ways we accomplish this for our clients is by walking them through land transfer tax applications.
Ontario Land Transfer Tax for Residential Properties
To calculate the Provincial Land Transfer Tax payable for residential properties, add the following together:
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.
2.5% on amounts exceeding $2,000,000 where the land contains one or two single-family residences.
This sum is payable for any residential property purchased anywhere in Ontario.
Toronto Land Transfer Tax for Residential Properties
If you are purchasing a property in the City of Toronto, in addition to the Provincial Land Transfer Tax you must also pay the Toronto Land Transfer Tax which can be calculated as follows:
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.
2.5% on amounts exceeding $2,000,000 where the land contains one or two single-family residences.
Ontario Land Transfer Tax for Commercial Properties
To calculate the total LTT payable for Commercial properties, add the following together:
0.5% on the first $55,000
plus 1.0% of the amount from $55,001 to $250,000
plus 1.5% of the amount in excess of $250,001
For more information see http://www.fin.gov.on.ca/en/tax/ltt/
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