Land Transfer Tax Calculator Ontario 2018
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Reviewed by Calculator Editorial Team
This calculator helps you determine the Ontario land transfer tax for 2018 based on the property value. The Ontario Land Transfer Tax Act (L.T.T.A.) applies to the transfer of real property in Ontario, including residential and commercial properties.
How to Use This Calculator
To calculate the land transfer tax for your property:
- Enter the total purchase price of the property in the "Property Value" field.
- Select the appropriate tax bracket from the dropdown menu.
- Click the "Calculate" button to see the estimated tax amount.
- Review the result and any additional information provided.
The calculator will display the estimated tax amount based on the 2018 tax brackets. Note that this is an estimate and actual tax amounts may vary based on specific circumstances.
Formula Used
The Ontario land transfer tax is calculated based on the property value and the applicable tax bracket. The formula used is:
Land Transfer Tax = (Property Value - Exemption Amount) × Tax Rate
The exemption amount varies depending on the property type and location. For residential properties, the exemption amount is $400,000. For commercial properties, the exemption amount is $100,000.
The tax rate is determined by the tax bracket in which the property value falls. The 2018 tax brackets are shown in the table below.
Worked Examples
Example 1: Residential Property
Property Value: $500,000
Tax Bracket: 1.0% (for properties between $400,000 and $500,000)
Land Transfer Tax = ($500,000 - $400,000) × 1.0% = $1,000
Example 2: Commercial Property
Property Value: $2,000,000
Tax Bracket: 2.5% (for properties between $1,000,000 and $2,000,000)
Land Transfer Tax = ($2,000,000 - $1,000,000) × 2.5% = $25,000
2018 Tax Brackets
The 2018 Ontario land transfer tax brackets are as follows:
| Property Value Range | Tax Rate |
|---|---|
| $400,000 - $500,000 | 1.0% |
| $500,000 - $1,000,000 | 2.0% |
| $1,000,000 - $2,000,000 | 2.5% |
| $2,000,000 - $5,000,000 | 3.0% |
| Over $5,000,000 | 3.5% |
Note: These brackets apply to residential properties. Commercial properties have different exemption amounts and tax rates.
Frequently Asked Questions
What is the Ontario Land Transfer Tax Act?
The Ontario Land Transfer Tax Act (L.T.T.A.) is legislation that imposes a tax on the transfer of real property in Ontario. The tax is calculated based on the property value and the applicable tax bracket.
How is the exemption amount determined?
The exemption amount varies depending on the property type and location. For residential properties, the exemption amount is $400,000. For commercial properties, the exemption amount is $100,000.
What happens if the property value is below the exemption amount?
If the property value is below the exemption amount, no land transfer tax is payable.
Are there any additional fees or charges?
In addition to the land transfer tax, there may be other fees and charges associated with the transfer of property, such as legal fees, land transfer fees, and municipal property taxes.
Where can I find more information about the Ontario Land Transfer Tax Act?
For more information about the Ontario Land Transfer Tax Act, you can visit the Ontario government website.