Learn Land Transfer | Haliburton Gold Group

When you're buying a house or condo in Ontario, you'll need to pay a land transfer tax when the deal is finalized. You can easily figure out how much you owe by using the Haliburton Gold Group's calculator. Alternatively, you can check the current tax rates in Ontario below.

Ontario Land Transfer Tax

Here are the land transfer tax rates in Ontario, which vary based on the purchase price of your home:

If you're buying a home in Ontario, you'll also need to pay a Ontario Land Transfer Tax. In addition to the land transfer tax, there are other closing costs in Ontario when buying a home, such as fees for an Ontario real estate lawyer and other buyer-related expenses.

Let's look at an example to calculate the Ontario land transfer tax for a $300,000 home:

1. For the first $55,000:
   $55,000 x 0.50% = $275 land transfer tax
   
   
2. For the next portion ($250,000 - $55,000):
   ($250,000 - $55,000) x 1.0% = $1,950 land transfer tax
   
   
3. For the remaining portion ($300,000 - $250,000):
   ($300,000 - $250,000) x 1.5% = $750 land transfer tax

Add these together:

$275 + $1,950 + $750 = $2,975 total Ontario land transfer tax

There's also an Ontario land transfer tax rebate for first-time home buyers, with a maximum rebate of $4,000. This refund fully covers the tax for homes up to $368,000. For homes over $368,000, buyers will receive the full $4,000 rebate and pay the remaining LTT balance.

Here are some examples of the Ontario land transfer tax rebate for different purchase prices:

• For a $100,000 home, you receive a rebate of $725, making the net tax payable $0.
• For a $200,000 home, you receive a rebate of $1,725, making the net tax payable $0.
• For a $227,500 home, you receive a rebate of $2,000, making the net tax payable $0.
• For a $600,000 home, you receive a rebate of $4,000, so the net tax payable is $4,475.

To be eligible for the first-time home buyer rebate in Ontario, you must meet certain criteria, including:

• Being a Canadian citizen or permanent resident.
• Being 18 years or older.
• Occupying the home within nine months of purchase.
• Not having owned a home previously.
• Ensuring that your spouse has not owned a home while being your spouse, although they may have been a previous home owner.
• If the home is newly constructed, it must also be eligible for home warranty.
• You must apply for the refund within 18 months of purchase.
  

Application Process

When you're registering your land transfer and paying taxes, you can apply for a tax refund right away. You'll find tax rebate application forms online for those who register electronically or in person at government offices.

If you don't claim the rebate during the registration, you'll need to pay the full tax amount. However, you can still apply for a refund from the Ministry of Finance within 18 months. To complete your application, you'll need the following information:

1. A filled-out Ontario Land Transfer Tax Refund Affidavit for First-Time Home Buyers.
2. A copy of the registered land transfer deed.
3. A copy of the purchase and sale agreement.
4. A copy of a document showing proof of your residence, like a driver's license, telephone or cable bills, and more.