The Government of Ontario levies a Land Transfer Tax (LTT) on any Transfer on an interest in land in Ontario, subject to limited exceptions. The tax must be remitted by the Purchaser/Transferee and is payable on the date of registration and is calculated as follows:
- 0.5% of the value of consideration for the transfer (purchase price) up to and including $55,000;
- 1% of the value of the consideration which exceeds $55,000 up to and including $250,000;
- 1.5% of the value of the consideration which exceeds $250,000; and
- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
First time home buyers may be entitled to a refund of the LTT, up to a maximum of $2,000. This refund is claimed at the time of registration. To claim the refund, you must swear an affidavit stating:
- You are at least 18 years old;
- You will occupy the home as your principle residence within 9 months after the date of transfer;
- You have not previously owned a home, or interest in a home, anywhere in the world; and
- Your spouse has not owned a home, or interest in a home, anywhere in the world while being your spouse.