What are Land
Transfer Taxes?
Purchasers in most large Canadian centres can add Land
Transfer Taxes to their list of closing costs. Unless you
live in Alberta, Saskatchewan, or rural Nova Scotia, Land
Transfer Taxes (or property purchase taxes) are a basic fact
of life.
Land Transfer Taxes, levied on properties changing hands,
are the responsibility of the purchaser. Depending on where
you live, the taxes can range from 0.5% to 2% of the total
value of the property.
Many provinces have multi-tiered taxation systems and these
can be 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 |
