Land transfer tax is assessed on real property when a deed is registered transferring ownership of the property from one party to another. The tax uses a sliding scale of percentages based on property value.
CALCULATION
Currently, the land transfer tax in Ontario is as follows:
0.5% on the first $55,000
1.0% on the portion between $55,000-$250,000
1.5% on balance over $250,000
Example: Land Transfer Tax Calculation
A single-family home is purchased for $ 450,000. The following calculation applies:
$0-$55,000 .005x$55,000 =275
$55,000-$250,000 .01x$195,000 =1,950
$250,000-$400,000 .015x$150,000 =2,250
$400,000 plus (.015+.005)x$50,000 =1,000
Land Transfer Tax Payable $5,475