Question 1

How is Ontario land transfer tax calculated?

Accepted Answer

Ontario land transfer tax uses a tiered rate structure: 0.5% on the first $55,000, 1.0% from $55,001 to $250,000, 1.5% from $250,001 to $400,000, 2.0% from $400,001 to $2,000,000, and 2.5% above $2,000,000. The calculator applies these tiers automatically and computes your exact tax.

Question 2

Is there a first-time buyer rebate?

Accepted Answer

Yes — Ontario first-time homebuyers receive a rebate of up to $4,000 on provincial land transfer tax. If you're buying in Toronto, the City of Toronto land transfer tax has a separate first-time buyer rebate of up to $4,475. The calculator applies both rebates if you qualify.

Question 3

What is Toronto's additional land transfer tax?

Accepted Answer

Properties within the City of Toronto boundary are subject to a second, municipal land transfer tax with the same rate structure as the provincial tax. This means Toronto buyers effectively pay land transfer tax twice. This can add $8,000–$20,000+ to your closing costs on a typical Toronto home purchase.

Question 4

When is land transfer tax paid?

Accepted Answer

Land transfer tax is paid on closing day through your real estate lawyer. It's calculated on the purchase price (or fair market value if higher) and must be paid before the title transfers to you. Budget for this as part of your closing costs — it's typically one of the largest expenses after the down payment.

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