Land Transfer Tax Ontario Calculator 2018 Commercial

This calculator helps you determine the Ontario land transfer tax for commercial properties based on the 2018 tax rates. Land transfer tax is a provincial tax imposed on the transfer of real property in Ontario. The tax is calculated based on the purchase price of the property and the applicable tax rate.

How to Calculate Land Transfer Tax in Ontario (2018 Commercial)

The Ontario land transfer tax for commercial properties is calculated using a progressive tax system. The tax rate increases as the purchase price of the property increases. The tax is calculated as follows:

Formula

Land Transfer Tax = Purchase Price × Tax Rate

The tax rate is determined based on the purchase price of the property, as shown in the table below.

The tax is calculated on the full purchase price of the property, including any additional costs such as legal fees, land transfer fees, and land survey fees. The tax is payable by the buyer at the time of transfer.

Steps to Calculate Land Transfer Tax

Determine the purchase price of the commercial property.
Identify the applicable tax rate based on the purchase price.
Multiply the purchase price by the tax rate to calculate the land transfer tax.

Important Note

This calculator uses the 2018 Ontario land transfer tax rates for commercial properties. The tax rates may have changed since then, so it's important to verify the current rates before making any calculations.

Ontario Land Transfer Tax Rates (2018)

The Ontario land transfer tax rates for commercial properties in 2018 are as follows:

Purchase Price Range	Tax Rate
$0 - $50,000	0.5%
$50,001 - $250,000	1%
$250,001 - $400,000	1.5%
$400,001 - $600,000	2%
$600,001 - $1,000,000	2.5%
Over $1,000,000	3%

The tax rates are progressive, meaning that the higher the purchase price, the higher the tax rate. For example, a commercial property purchased for $300,000 would be taxed at 1.5%, while a property purchased for $750,000 would be taxed at 2.5%.

Worked Examples

Here are two examples of how to calculate the Ontario land transfer tax for commercial properties using the 2018 tax rates.

Example 1: Purchase Price of $200,000

For a commercial property purchased for $200,000:

The applicable tax rate is 1%.
Land Transfer Tax = $200,000 × 1% = $2,000.

Example 2: Purchase Price of $550,000

For a commercial property purchased for $550,000:

The applicable tax rate is 2%.
Land Transfer Tax = $550,000 × 2% = $11,000.

Practical Considerations

When calculating the land transfer tax, it's important to consider the full purchase price of the property, including any additional costs such as legal fees, land transfer fees, and land survey fees. The tax is payable by the buyer at the time of transfer, so it's important to budget for this additional cost.

Frequently Asked Questions

What is the Ontario land transfer tax for commercial properties?

The Ontario land transfer tax for commercial properties is a provincial tax imposed on the transfer of real property. The tax rate increases as the purchase price of the property increases.

How is the Ontario land transfer tax calculated?

The Ontario land transfer tax is calculated by multiplying the purchase price of the property by the applicable tax rate. The tax rate is determined based on the purchase price of the property.

What are the Ontario land transfer tax rates for commercial properties in 2018?

The Ontario land transfer tax rates for commercial properties in 2018 are progressive, with rates ranging from 0.5% to 3% depending on the purchase price of the property.

Who is responsible for paying the Ontario land transfer tax?

The Ontario land transfer tax is payable by the buyer at the time of transfer. The tax is calculated on the full purchase price of the property, including any additional costs.

Are there any exemptions or deductions for the Ontario land transfer tax?

There are no exemptions or deductions for the Ontario land transfer tax. The tax is calculated on the full purchase price of the property and is payable by the buyer at the time of transfer.