Land Transfer Tax

Whenever a property changes hands, the buyer must pay a land transfer tax to the Provincial government. For Ontario, the Land Transfer Tax is computed using the following formula:

1. 0.5% of the first $55,000 of the purchase price ($275 max), plus
2. 1.0% on the amount exceeding $55,000 of the purchase price up to and including $250,000 ($1,950 max), plus
3. 1.5% on the amount exceeding $250,000 of the purchase price up to and including $400,000 ($2,250 max), plus
4. 2.0% on the amount over $400,000

Currently the only regions in Canada that do not charge a land transfer tax are the provinces of Alberta and Saskatchewan and rural areas in Nova Scotia.