Rosa Lupo
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Article
Published06 April 2017
New land transfer tax rates for Ontario
As of January 1, 2017, there are new land transfer tax ("LTT") tax rates applicable to the purchase of land (residential and commercial) in Ontario. The new tax rates are as follows:
| Value of the Land | Rate |
|---|---|
| Amounts up to and including $55,000.00 | 0.5% |
| $55,000.01, up to and including $250,000.00 | 1.0% |
| $250,000.01 up to and including $400,000.00 | 1.5% |
| Amounts over $400,000 | 2.0% |
| Where the land contains one or two single family residences, and the amount is over $2,000,000.00 | 2.5% |
The new tax rates apply to all purchases of land where: (1) the agreement of purchase and sale was entered into after November 14, 2016; and (2) the transaction closes on or after January 1, 2017.
A Comparison of the old and new LTT rates (applicable to properties not in Toronto)
Sample LTT calculation using old LTT rates
| Value of Land | LTT Rate | Sample LTT Calculation |
|---|---|---|
| Up to and including $55,000.00 | 0.5% Amount × .005 | Consideration $55,000.00 ($55,000.00 × .005 = $275.00) |
| $55,0001.00 to $250,000.00 | 1.0% Amount × .01 minus $275.00 | Consideration $250,000.00 ($250,000.00 × .01 minus $275.00 = $2,225.00) |
| Over $250,000.00 | 1.5% Amount × .015 minus $1,525.00 | Consideration $375,000.00 ($375,000.00 × .015 minus $1,525.00 = $4,100.00) |
| Over $400,000.00 where land contains one or two single family residences | 2.0% Amount × .02 minus $3,525.00 | Consideration $500,000.00 ($500,000.00 × .02 minus $3,525.00 = $6,475.00) |
Sample LTT calculation using new LTT rates
| Value of Land | LTT Rate | Sample LTT Calculation |
|---|---|---|
| Up to and including $55,000.00 | 0.5% Amount × .005 | Consideration $55,000.00 ($55,000.00 × .005 = $275.00) |
| $55,0001.00 to $250,000.00 | 1.0% Amount × .01 minus $275.00 | Consideration $250,000.00 ($250,000.00 × .01 minus $275.00 = $2,225.00) |
| $250,001.00 to $400,000.00 | 1.5% Amount × .015 minus $1,575.00 | Consideration $375,000.00 ($375,000.00 × .015 minus $1,525.00 = $4,100.00) |
| Over $400,000.00 | 2.0% Amount × .02 minus $3,525.00 | Consideration $500,000.00 ($500,000.00 × .02 minus $3,525.00 = $6,475.00) |
| Over $2,000,000.00 where land contains one or two single family residences | 2.5% Amount × .025 minus $13,525.00 | Consideration $3,000,000.00 ($3,000,000.00 × .025 minus $13,525.00 = $61,475.00) |
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