Land Transfer Tax calculator
A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The tax is a percentage of the value of the property based on a graduated scale:
- .5% on amounts up to and including $55,000;
- +1.0% on the amount exceeding $55,000 up to and including $250,000;
- +1.5% on amounts above $250,000 up to and including $400,000 for residential / +1.5% on the amount in excess of $250,000 for business properties;
- +2.0% of the amount in excess of $400,000. [residential only]
These four portions added up together total the LTT payable. A simple formula is as follows:
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Purchase Price
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Calculation of LTT
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$0 to $55,000
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.005 x purchase price
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$55,001 to $250,000
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(.01 x purchase price) minus 275
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$250,001 to $400,000 (residential)
$250,001 plus (business)
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(.015 x purchase price) minus 1525
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$400,001 plus (residential only)
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(.02 x purchase price) minus 3525
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** If the purchase price falls within this range, then apply the appropriate formula to the purchase price. For example on a $200,000 property, the LTT calculation would be [(.01 x $200,000) minus 275 = $1725].
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For more information call the Ontario Finance Ministry at 1-800-263-7965 or access through www.gov.on.ca/FIN/english/bke-ltt.htm
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Randy Yetman,
FRI, MVA
