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Land Transfer Tax
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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).

Details
  • 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

 

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