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New land transfer tax rates for Ontario

April 6, 2017

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 x .005

Consideration $55,000.00

($55,000.00 x .005 = $275.00)

$55,0001.00 to $250,000.00

1.0%

Amount x .01  minus $275.00

Consideration $250,000.00

($250,000.00 x .01 minus $275.00 = $2,225.00)

Over $250,000.00

1.5%

Amount x .015 minus $1,525.00

Consideration $375,000.00

($375,000.00 x .015 minus $1,525.00 = $4,100.00)

Over $400,000.00

where land contains one or two single family residences

2.0%

Amount x .02 minus $3,525.00

Consideration $500,000.00

($500,000.00 x .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 x .005

Consideration $55,000.00

($55,000.00 x .005 = $275.00)

$55,0001.00 to $250,000.00

1.0%

Amount x .01 minus $275.00

Consideration $250,000.00

($250,000.00 x .01 minus $275.00 = $2,225.00)

$250,001.00 to $400,000.00

1.5%

Amount x .015 minus $1,575.00

Consideration $375,000.00

($375,000.00 x .015 minus $1,525.00 = $4,100.00)

Over $400,000.00

2.0%

Amount x .02 minus $3,525.00

Consideration $500,000.00

($500,000.00 x .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 x .025 minus $13,525.00

Consideration $3,000,000.00

($3,000,000.00 x .025 minus $13,525.00 = $61,475.00)


NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

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