How to Calculate Land Transfer Tax Ontario 2019

Calculating land transfer tax in Ontario for 2019 involves understanding the property's assessed value, the tax rates applicable to your situation, and any exemptions or deductions you may qualify for. This guide will walk you through the process step by step, including how to use our calculator to determine your tax liability accurately.

What is Land Transfer Tax?

Land transfer tax is a provincial tax imposed on the transfer of ownership of real property in Ontario. It is calculated based on the assessed value of the property and the applicable tax rate. The tax is paid to the Ontario government and is separate from property transfer taxes that may be imposed by municipalities.

The purpose of land transfer tax is to generate revenue for provincial programs and services. The tax rates vary depending on whether the property is residential, commercial, or agricultural, and whether the transfer is between individuals, corporations, or other entities.

How to Calculate Land Transfer Tax

The calculation of land transfer tax involves several steps:

Determine the assessed value of the property.
Identify the applicable tax rate based on the type of property and the transfer.
Calculate the tax by multiplying the assessed value by the applicable tax rate.
Apply any exemptions or deductions if applicable.

The formula for calculating land transfer tax is:

Land Transfer Tax = Assessed Value × Tax Rate

For example, if a residential property has an assessed value of $300,000 and the applicable tax rate is 1%, the land transfer tax would be $3,000.

Tax Rates for 2019

The tax rates for land transfer tax in Ontario for 2019 are as follows:

Property Type	Tax Rate
Residential Property	1%
Commercial Property	1.5%
Agricultural Property	0.5%

These rates apply to transfers between individuals. Different rates may apply to transfers involving corporations or other entities.

Examples of Calculations

Example 1: Residential Property

Assessed Value: $250,000

Tax Rate: 1%

Land Transfer Tax: $250,000 × 1% = $2,500

Example 2: Commercial Property

Assessed Value: $500,000

Tax Rate: 1.5%

Land Transfer Tax: $500,000 × 1.5% = $7,500

Example 3: Agricultural Property

Assessed Value: $100,000

Tax Rate: 0.5%

Land Transfer Tax: $100,000 × 0.5% = $500

Frequently Asked Questions

What is the difference between land transfer tax and property transfer tax?: Land transfer tax is a provincial tax imposed on the transfer of ownership of real property, while property transfer tax is a municipal tax that may be imposed by individual cities or towns.
Are there any exemptions for land transfer tax?: Yes, there are exemptions for transfers involving certain types of properties, such as agricultural land, and for transfers between spouses or common-law partners.
How do I determine the assessed value of my property?: The assessed value of your property is typically determined by the Ontario Land Tribunal and is based on the property's market value.
When is land transfer tax due?: Land transfer tax is typically due at the time of the property transfer and must be paid to the Ontario government.
Can I appeal a land transfer tax assessment?: Yes, you can appeal a land transfer tax assessment by filing a notice of appeal with the Ontario Land Tribunal within the specified time period.