Land Transfer Tax Ontario Calculator 2020

Calculating Ontario land transfer tax can be complex, but this calculator simplifies the process. Whether you're buying a home, investing in property, or transferring land, understanding the tax implications is crucial. This guide explains the 2020 land transfer tax rates, how to calculate them, and what to consider when purchasing property in Ontario.

How to Use This Calculator

Using the Ontario land transfer tax calculator is straightforward. Follow these steps:

Enter the purchase price of the property in the "Property Value" field.
Select the type of property from the dropdown menu.
Choose the ownership type (first-time buyer, existing homeowner, etc.).
Click "Calculate" to see your estimated land transfer tax.

The calculator will display the total tax amount and provide a breakdown of how it was calculated. You can also view a chart showing the tax rates applied to your property value.

How Land Transfer Tax Works in Ontario

Land transfer tax is a provincial tax imposed on the transfer of ownership of real property in Ontario. The tax is calculated based on the purchase price of the property and the type of property being transferred.

The tax is levied by the Ontario government and is used to fund various provincial programs and services. The tax rates vary depending on the type of property and the ownership status of the buyer.

Note: Land transfer tax is different from property transfer tax, which is a federal tax. The federal tax is calculated based on the value of the property and is imposed by the Canada Revenue Agency.

2020 Land Transfer Tax Rates

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

Property Type	Tax Rate	Maximum Tax Amount
Residential Property	0.5%	$10,000
Commercial Property	1.5%	$25,000
Farmland	0.25%	$5,000

There are also exemptions and reductions available for certain types of property transfers, such as transfers to first-time home buyers or transfers involving certain types of commercial properties.

Worked Examples

Example 1: Residential Property Purchase

You are purchasing a residential property in Ontario for $400,000. The property is not exempt from land transfer tax.

Tax = Property Value × Tax Rate

Tax = $400,000 × 0.5% = $2,000

The land transfer tax for this purchase would be $2,000.

Example 2: Commercial Property Purchase

You are purchasing a commercial property in Ontario for $1,000,000. The property is not exempt from land transfer tax.

Tax = Property Value × Tax Rate

Tax = $1,000,000 × 1.5% = $15,000

The land transfer tax for this purchase would be $15,000.

Frequently Asked Questions

What is land transfer tax in Ontario?: Land transfer tax is a provincial tax imposed on the transfer of ownership of real property in Ontario. The tax is calculated based on the purchase price of the property and the type of property being transferred.
How is land transfer tax calculated in Ontario?: The land transfer tax is calculated by multiplying the purchase price of the property by the applicable tax rate. The tax rates vary depending on the type of property and the ownership status of the buyer.
Are there any exemptions or reductions for land transfer tax in Ontario?: Yes, there are exemptions and reductions available for certain types of property transfers, such as transfers to first-time home buyers or transfers involving certain types of commercial properties.
Who collects land transfer tax in Ontario?: Land transfer tax is collected by the Ontario government and is used to fund various provincial programs and services.
Is land transfer tax the same as property transfer tax?: No, land transfer tax is different from property transfer tax, which is a federal tax imposed by the Canada Revenue Agency. The federal tax is calculated based on the value of the property and is imposed on the sale of real property.