Ontario's Land Transfer Tax is a provincial tax payable by the purchaser upon the acquisition of an interest in land by registered conveyance or unregistered disposition. Therefore, if you purchase a property or land you are responsible for paying Land Transfer Tax to the province at the time the transaction closes.
Every person/entity obtaining an interest in land or property is liable to land transfer tax. The purchaser is responsible for paying land transfer tax NOT the seller.
Land Transfer Tax is payable at the time the purchaser is registered as the new owner in the Land Title Office on closing. First time home buyers of newly built homes receive their refund immediately. First time home buyers of resale homes must apply to the Government for their refund.
The purchaser's solicitors pays the Land Transfer Tax on behalf of the purchaser on the closing date. The purchaser will be required to provide their solicitor closing funds (certified) that will cover the closing expenses. Visit our "Get a FREE Price Quote Now" Closing Cost Quotation System for more details.
The tax is calculated on the value of the consideration for the transfer. In certain circumstances the Land Transfer Act (Act) deems the value of the consideration to be the fair market value of the land.
On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price (less a HST calculation, if the property purchased is a newly built home). The LTT is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:
NOTE: If you are buying new from the builder, the Land Transfer Tax is calculated on a price which is net of the HST and therefore the Land Transfer Tax will be slightly less for a new home than for a resale home with the same price.