Who Pays the Land Transfer Tax in Toronto

Toronto land transfer tax applies within the following boundaries: Steeles Avenue as the north boundary, Etobicoke as the western boundary, Scarborough as the eastern boundary and Lake Ontario as the southern boundary. For example, if you recently purchased a property for $100,000, but its value was $80,000 at the time of the last transfer, an additional reported value of $20,000 will be shown. Therefore, your insurance costs are $30 ($20 for the first $10,000 and $10 for the remaining $10,000). For those who purchase a condominium before construction in Toronto, your land transfer tax will be due on your closing date, such as a regular purchase of a home. The main difference is when this is the case, with your submission deadline being after the city has completed its inspection and after the building has been officially registered. Usually, this date will be communicated to your lawyer, who will inform you. First $55,000 X 0.5% To $55,000 to $250,000 X 1% To $250,001 to $400,000 X 1.5% More than $400,001 X 2.5% if the land contains one or two single-family homes. The Toronto Land Transfer Tax was originally introduced in February 2008 after Toronto City Council approved the tax in 2006 under a law called the City of Toronto Act. Before Toronto had a municipal tax on land transfers, home buyers in Toronto still paid the provincial land transfer tax introduced in Ontario in 1974. Since Toronto is the only major city that has a municipal land transfer tax in addition to a provincial land transfer tax, it has the highest total land transfer tax rate in Canada. With the combination of some of the highest real estate prices in Canada and the highest real estate transfer tax rates, this means you can expect a significant bill compared to other cities in Canada. In the cities of Edmonton and Calgary, there is virtually no land transfer tax, with the only transfer fee being the registration fee. In the City of Vancouver, the land transfer tax rate will gradually increase to 5 per cent, but the absence of municipal land transfer taxes and a larger provincial rebate for first-time buyers mean it is still much lower than in Toronto.

Ottawa has the same provincial transfer taxes as Toronto, but buyers don`t have to pay municipal tax, making them much lower. After all, each region of Quebec has different rates of land transfer tax, and Montreal`s real estate transfer tax rate rises to 3% at the upper end. However, with lower home equity and strong first-time buyer programs, Montreal will have much lower real estate transfer tax bills than Toronto. Effective December 16, 2017, new provincial land transfer tax returns will be added to Teraview, Ontario`s electronic land registry system. Such declarations have been added to Ontario`s affidavits and forms. For more information, visit the following websites: In the Northwest Territories, land transfer taxes are calculated as a percentage of the value of the property and the amount of the mortgage as follows: The Ontario Conservative government was introduced in Ontario in 1974 and presented to real estate buyers the provincial land transfer tax with an initial percentage of 0.3% for a maximum of $35,000 of the purchase price of the real estate and 0.6% for the rest. In 2008, in addition to provincial land transfer taxes, a municipal land transfer tax was introduced for home buyers in Toronto, and in 2017, a speculation tax for non-residents came into effect for the Greater Golden Horseshoe. Ontario`s land transfer tax rates were last updated in 2017. Tax rates on real estate transfers in Ontario do not change often. When Ontario`s land transfer tax rates were last updated in 2017, it was the first update in 20 years since 1997. You can request the refund for first-time buyers at the time of registering your property or at a later date.

If you claim the refund at registration, your real estate lawyer can apply for the refund electronically if they register your property through Ontario`s electronic land registry system. If you have overpaid your real estate transfer tax, for example. B if you are now entitled to a reduction or exemption, you can apply for a refund from the Department of Finance. You can also pay the land transfer tax in advance before registering your property. Local municipalities levy a tax on the residential or commercial property you own. If you have any questions about municipal property taxes, contact your local municipality. If your property is located in a disorganized area (an area without a municipal body) of Ontario, property tax is collected through the province`s property tax program, which is administered by the Provincial Property Tax Office in Thunder Bay. That`s right! You will start paying the occupancy fee to the builder, but you will not own it until after the final closing, when you take over the property, receive your mortgage and pay the land transfer tax. For more information on the refund of land transfer tax, contact your real estate lawyer or visit the Revenue Canada website.

First-time home buyers who purchase in Prince Edward Island are exempt from land transfer tax in the following circumstances: In New Brunswick, land transfer tax currently stands at 1.0% of the estimated value of the property. For example, if you buy a home with an estimated value of $100,000, the tax payable is $1,000. Excellent article! Does the land transfer tax refund cover both the Ontario ALS and the Toronto Land Transfer Tax? I`m going to be a first time buyer, and that would definitely help me. In some cases, land transfer taxes are based on the fair value of the property, such as the following examples: Any person who purchases or acquires land in Ontario that contains at least one or more than six single-family homes or farmland must provide this additional information. I am a first buyer and the apartment I bought has tenants for the next 3 months. Am I still entitled to a refund of real estate transfer tax? I don`t know if I will move in after that or if I will look for another tenant. The Toronto First Home Buyer Rebate is a program designed to allow people who do not own a home and have never bought one before to afford it. The way this rebate works is that it reduces the amount of land transfer tax you owe to the City of Toronto and makes buying a home a little easier. The main reason this program is designed to help first-time buyers is that they usually have a much harder path to homeownership.

First-time buyers don`t have the equity in another home that they can use to buy a home, may also not have their primary income potential, and face relatively prohibitive prices for most people. Land Registration Fee: This administration fee covers the change of the property`s real name. There is a base fee of $50 plus an additional fee of $2 for every $5,000 of the fair market value of the property (or part of it). Check with a lawyer, but properties change hands, so I don`t see any reason why you both don`t have to pay land transfer tax on the property you`re buying. Real estate transfer tax is paid by your lawyer at closing. If your lawyer decides to register your property electronically, Ontario`s electronic land registry system will calculate the land transfer tax payable after the rebates and exemptions. Your property can also be personally registered with a land registry. If you purchase real estate in the City of Toronto, you can also pay the City of Toronto`s municipal land transfer tax. Real estate transfer tax is payable on the actual purchase price. Please also note that there are new statements on the legal obligations and record-keeping obligations of assignees. .