The Ontario Land Transfer Tax (LTT) is a tax imposed on the transfer of real property in the province of Ontario, Canada. It is typically payable by the purchaser of the property and is calculated based on the purchase price or consideration paid for the property. The tax applies to most types of real estate transactions, including residential, commercial, and industrial properties.
The LTT rates are progressive, meaning that the tax rate increases as the purchase price of the property increases. As of my last update in September 2021, here are the LTT rates for both the provincial and municipal portions:
**For properties located in the City of Toronto:**
- Purchase price up to $55,000: 0.5%
- Purchase price over $55,000 up to $250,000: 1.0%
- Purchase price over $250,000 up to $400,000: 1.5%
- Purchase price over $400,000 up to $2,000,000: 2.0%
- Purchase price over $2,000,000: 2.5%
Additionally, there is a provincial portion of the LTT that applies to properties outside of Toronto:
- Purchase price up to $55,000: 0.5%
- Purchase price over $55,000 up to $250,000: 1.0%
- Purchase price over $250,000 up to $400,000: 1.5%
- Purchase price over $400,000: 2.0%
It's important to note that these rates might have changed since September 2021, and there may also be exemptions or rebates available under certain circumstances, such as first-time homebuyers or certain types of transfers between family members.
Before making any real estate transactions, it's recommended to consult official government sources or seek advice from legal or financial professionals to ensure you have accurate and up-to-date information regarding the Ontario Land Transfer Tax and its implications for your specific situation.