|
 |
Land Transfer Tax
|
|
New Toronto Land Transfer Tax Calculator
|
|
|
|
|
Provincial Land Transfer Tax (PLTT) Rebate Program |
First-time home buyers who purchase
a newly constructed home will
receive a rebate of the Provincial
Land Transfer Tax (LTT). All other
buyers will continue to pay the full
applicable tax. The maximum
Provincial LTT rebate is $2,000.
Details
-
The 1996 Ontario Budget
announced a special one-year
provision to the Provincial LTT
that was
renewed every year and is now a
permanent program.
-
FIRST-TIME
BUYERS
who purchase a NEWLY CONSTRUCTED
HOME will receive a rebate of
the Provincial LTT. All other
buyers will continue to pay the
full applicable tax.
-
The maximum rebate is $2000. If
an individual owns less than
100% interest in the newlybuilt
home, the amount of the rebate
would be reduced and calculated
according to the amount of
interest in the home.
-
A rebate of $2,000 is equivalent
to the Provincial LTT payable on
a purchase price of $227,500
(net of GST).
-
Only individuals who are at
least 18 years of age, have not
(or spouse) previously owned an
interest in a home anywhere
qualify for the rebate.
-
Individuals who have received an
Ontario Home Ownership Savings
Plan (OHOSP) based refund of the
Provincial LTT do not qualify.
-
A real estate transfer tax is
assessed on real property when
ownership of the property is
transferred from one party to
another. The Provincial Land
Transfer Tax is a percentage of
the value of the property based
on a graduated scale:
-
0.5% on amounts up to and
including $55,000;
-
+1.0% on the amount exceeding
$55,000 up to and including
$250,000;
-
+1.5% on amounts above $250,000
up to and including $400,000 for
residential /
+1.5% on the amount in excess of
$250,000 for business
properties;
-
+2.0% of the amount in excess of
$400,000. [Residential only]
-
For more
information call the Ontario
Finance Ministry at
1-800-263-7965.
|
These four portions
added up together total the Provincial LTT
payable.
A simple formula is as follows: |
|
**Purchase Price |
Calculation of LTT |
|
$0 to $55,000 |
.005 x purchase price |
$250,001 to $400,000 (residential)
$250,001 plus (business) |
(.01 x purchase price) minus 275 |
|
$400,001 plus (residential only) |
(.015 x purchase price) minus 1525 |
|
$400,001 plus (residential only) |
(.02 x purchase price) minus 3525 |
|
** If the purchase price falls within this
range, then apply the appropriate formula to
the purchase price. For example on a
$200,000 property, the LTT calculation would
be [(.01 x $200,000) minus 275 = $1725].
|
|
|
|
|
Toronto Land Transfer Tax (TLTT) Rebate Program |
Program
First-time home buyers who purchase
a re-sale or newly constructed home
will receive a rebate of the Toronto
Land Transfer Tax (TLTT).
-
The City of Toronto provides a
rebate of the TLTT to first-time
home buyers of re-sale or newly
constructed homes.
-
The maximum TLTT rebate is
$3,725 (equivalent to the TLTT
payable on a $400,000 home).
-
According to the City of
Toronto, eligibility rules for
the TLTT first-time buyer rebate
will mirror provincial rules, as
follows:
-
The
purchaser
must be
at least
18 years
of age.
-
The
purchaser
must
occupy
the home
as his
or her
principal
residence
no later
than
nine
months
after
the date
of the
conveyance
or
disposition.
-
The
purchaser
cannot
have
previously
owned a
home, or
had any
ownership
interest
in a
home,
anywhere
in the
world,
at any
time.
-
If the
purchaser
has a
spouse,
the
spouse
cannot
have
owned a
home, or
had any
ownership
interest
in a
home,
anywhere
in the
world
while he
or she
was the
purchaser's
spouse.
If this
is the
case, NO
refund
is
available
to
either
spouse.
Note: If
a
purchaser's
spouse
owned an
interest
in a
home
BEFORE
becoming
the
purchaser's
spouse,
but not
while
the
purchaser's
spouse,
the
purchaser
may be
eligible
for some
rebate.
The tax is a percentage of value of
the property based on a graduated
scale:
-
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
For additional information, contact
the City of Toronto at 416-338-0338
|
|
|
|
|
|
