Land Transfer Tax (LTT) is a tax charged by Ontario to buyers of real estate at the time a deed is tendered for registration with the Land Titles Office. It is sometimes called the "Welcome Tax".
LTT is calculated as a percentage of the purchase price of the property as follows:
(a) ½ of 1% (or .05% or $5 per $1000) to $55,000, and
(b) 1% (or /1% or $10 per $1000) over $55,000 to $250,000 and
(c) an additional .5% for all values over $150,000 but under $450,000
An easy rule of thumb for properties under $250,000 is to take 1% of the value of the property and substract $275 (to account for the .5% reduction in tax for the first $55,000 of value). For example, if the property is worth $100,00 the tax would be calculated as follows:
$100,00 x .01 = $1,000
equals LTT of $725
Use our on-line tool to help calculate land transfer tax for your purchase.
There are some situations that involve different calculations, so be sure to consult with your legal advisor to get the proper calculation.
Provided By Chinneck Law www.chinnecklaw.ca