Most Canadians purchasing new real estate must pay Land Transfer Taxes. Some provinces are exempt: Alberta, Saskatchewan and rural Nova Scotia. Land Transfer Taxes are sometimes called LTT or PPT (Property Purchase Tax).
All homeowners pay property taxes, municipal taxes and other fees associated with the privilidge of owning a home.
What are land transfer taxes?
Land Transfer Taxes are provincial taxes levied when real estate changes hands. The purchaser is responsibility for paying these taxes. Depending on where you buy a home, the taxes may range from 0.5% to 2% of the total value of the property.
Many provinces have multi-tiered taxation systems, which can be a little complicated. If you purchase a property for $260,000 in Ontario, for example, 0.5% is charged on the first $55,000; 1% is charged on $55,000 to $250,000, and 1.5% is charged on $250,000 to $400,000.
Ontario Land Transfer Tax
Up to $55,000 X 0.5% 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
Use our Real Estate Calculators to help you estimate your closing costs when buying a new home in Mississauga, Oakville, Milton and Burlington. For more info on closing costs search our GTA Real Estate Blog or contact Angelo D’Amico or Dayana Hameed.