Ontario Land Transfer Tax
Buyers in Burlington and Waterdown who purchase a property are required to pay Ontario Land Transfer Taxes. "property" includes "any buildings or buildings to be constructed". The Land Transfer Tax payment will be incorporated into the closing costs of the purchase transaction.
First time home-buyers may be eligible for a refund on all or part of this tax. Information about the refund program can be found on the Ontario, Ministry of Finance website. Please consult your lawyer to determine your eligibility.
The multi-tiered taxation systems can sometimes be difficult to understand, however it is a fairly simple calculation. Below are the details on how the amount payable in Ontario is calculated:
Up to $55,000 X .5 % of total property value
From $55,000 to $250,000 X 1% of total property value
First time home-buyers may be eligible for a refund on all or part of this tax. Information about the refund program can be found on the Ontario, Ministry of Finance website. Please consult your lawyer to determine your eligibility.
The multi-tiered taxation systems can sometimes be difficult to understand, however it is a fairly simple calculation. Below are the details on how the amount payable in Ontario is calculated:
Up to $55,000 X .5 % of total property value
From $55,000 to $250,000 X 1% of total property value
From $250,000 to $400,000 X 1.5% of total property value
From $400,000 up X 2 % of total property value
As an example, if you buy a property in Ontario for $350,000, 0.5% is charged on the first $55,000, 1% is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5%. Your total tax bill? $3,725.00.
From $400,000 up X 2 % of total property value
As an example, if you buy a property in Ontario for $350,000, 0.5% is charged on the first $55,000, 1% is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5%. Your total tax bill? $3,725.00.
*** In addition to Ontario's land transfer tax, transfers of land located in the City of Toronto may also be subject to the City of Toronto's own municipal land transfer tax. For more information about the City of Toronto Land Transfer Tax program, please visit the city's website or call 416-338-4239, Monday to Friday, 8:30 a.m. to 4:30 p.m.
