Land Trasfer Tax

LAND TRANSFER TAX FORMULAS

 

Use the following formulas to determine how much you will be paying for

Ontario Land Transfer Tax and Toronto Land Transfer Tax.

 

Provincial Land Transfer Tax                                

 0,5 % of the amount of the purchase price up to and including $55,000, plus

1% of the amount of the purchase price between $55,000 and $250,000, plus

1,5% of the amount of the purchase price between $250,000 and $400,000 plus

2% of the amount of the purchase price above $400,000

Provincial Land Transfer Tax is payable on all properties purchased in Ontario.

 

For more information on Provincial Land Transfer Tax call Ontario Ministry of Finance 1-800-263-7965 or visit  www.NoHomeBuyingTax.com

 

Toronto Land Transfer Tax:

0,5 % of the amount of the purchase price up to and including $55,000, plus

1% of the amount of the purchase price between$55,000 and $400,000 plus

2% of the amount of the purchase price above $400,000

Toronto Land Transfer Tax is payable only for properties located in the City of Toronto and is paid in addition to the Ontario Land Transfer Tax.

For more information call City of Toronto 416-338-0338 or visit  www.

Government Homeownership Incentive Programs

Land Transfer Tax Rebates

First- time Buyers of new and resale homes and condominiums are eligible to receive rebates of the Provincial and Toronto Land Transfer Tax.

 

Provincial Land Transfer Tax

  • The maximum Provincial Land Transfer Tax rebate is $2,000. This amount corresponds to a purchase price of $225,000.

Toronto Land Transfer Tax  

  • The maximum Toronto Land Transfer Tax rebate is $3,725, which corresponds to a purchase price of $400,000.
  • Toronto Land Transfer Tax rebate is in addition to any Provincial Land Transfer Tax rebate that the buyer qualifies for.

 

First Time Home Buyer Eligibility Criteria

  • The Buyer must at least 18 years old,
  • The Buyer must reside at the house he purchased as his or her principal residence no later than nine months after the date of the purchase.
  •  The Buyer cannot have previously owned a house, or had been registered on a title of a house as an owner or had any ownership interest in a home, anywhere in the world, at any time.
  • If the Buyer is married, his or her spouse, likewise, cannot have owned a house, or had been registered on a title of a house as an owner or had any ownership interest in a home, anywhere in the world, at any time, while he or she was the Buyer’s souse. If the Buyer’s spouse had an ownership interest in a property while they were married, no refund is available to either spouse.  
  • There is no expiry time frame for having own the house after which time a Buyer can regain their first time buyer status. If you owned a property in your lifetime the Buyer is not eligible for the first time home buyer rebate.

 

Home Buyer’s Plan

The Home Buyer’s Plan allows first time buyers to withdraw up to $25,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a house.

For the purposes of the Home Buyer’s Plan, a Buyer will be considered as a first time buyer if they haven’t owned a house as their principal residence for four years, immediately preceeding the date of the withdrawal of funds.

The money withdrawn from the Buyer’s RRSP must be repaid within 15 years. The Buyer must start re-paying two years after withdrawal.

www.servicecanada.gc.ca

 

Home Buyers’ Tax Credit (HBTC)

The Home Buyers’ Tax Credit allows the Buyer to claim a non-refundable tax credit up to $5,000. You can apply if:

  •  you are first time home buyer, or
  • before purchasing your home, which will be your principal residence,   you haven’t lived in another home owned by you, your spouse, or common law partner in any of the four preceding years. 

Check the Canada Revenue Agency website to confirm eligibility. If you are eligible you can apply for HBTC when filling an income tax return.

CCRA            Canada Custom and Revenue Agency 1-800- 959-8281 www.ccra-adrc.gc.ca

www.actionplan.gc.ca