Land Transfer Tax Calculator Ontario 2020

How the Ontario Land Transfer Tax Works

The Ontario land transfer tax (LTT) is a provincial tax imposed on the transfer of real property. It applies to residential, commercial, and agricultural properties. The tax is calculated based on the property's assessed value and your tax bracket.

Who Pays Land Transfer Tax?

The tax is typically paid by the buyer in a real estate transaction. However, in some cases, the seller may be responsible if they are transferring the property to a family member or to a charity. The tax is not applicable to transfers between spouses or to certain government entities.

When Is Land Transfer Tax Due?

The tax must be paid at the time of the property transfer. In most cases, the buyer's lawyer or realtor will arrange for the payment to be made to the Ontario government. The tax is not refundable, even if the property is later sold for less than the purchase price.

2020 Land Transfer Tax Rates

The 2020 land transfer tax rates in Ontario are as follows:

The tax is calculated on the property's assessed value, not the purchase price. The assessed value is determined by the Ontario Land Registry and is based on the property's size, location, and other factors.

Exemptions and Deductions

There are several exemptions and deductions that can reduce or eliminate the land transfer tax. These include:

• First-time homebuyer exemption: If you are a first-time homebuyer, you may be eligible for an exemption of up to $10,000 on the first $500,000 of the property's value.
• Spousal exemption: If you are transferring a property to your spouse, you may be eligible for an exemption of up to $10,000.
• Charitable donation exemption: If you are transferring a property to a registered charity, you may be eligible for an exemption of up to $10,000.
• Family exemption: If you are transferring a property to a family member, you may be eligible for an exemption of up to $10,000.

How to Calculate Land Transfer Tax

To calculate the land transfer tax, follow these steps:

1. Determine the property's assessed value.
2. Identify your tax bracket based on the property's value.
3. Calculate the tax using the appropriate rate.
4. Apply any exemptions or deductions.

For example, if you are purchasing a property with an assessed value of $350,000, you would be in the $250,001 to $400,000 tax bracket. The tax would be calculated as follows:

Worked Examples

Example 1: Residential Property

Property value: $450,000

Tax bracket: $400,001 to $1,000,000 (1.5%)

Calculation: ($450,000 × 1.5%) = $6,750

Example 2: Commercial Property

Property value: $1,200,000

Tax bracket: $1,000,001 to $2,000,000 (2%)

Calculation: ($1,200,000 × 2%) = $24,000

Example 3: Agricultural Property

Property value: $800,000

Tax bracket: $400,001 to $1,000,000 (1.5%)

Calculation: ($800,000 × 1.5%) = $12,000