Calculating Land Transfer Tax
How do I calculate land transfer tax?
The tax rates on the value of the consideration are:
| Percentage | Explanation |
|---|---|
| 0.5% |
amounts up to and including $55,000 |
| 1.0% |
amounts exceeding $55,000 up to and including $250,000 |
| 1.5% |
amounts exceeding $250,000 |
| 2.0% |
amounts exceeding $400,000 where the land contains one or two single family residences |
For a quick calculation of land transfer tax refer to the following list. Residential property refers to land containing one or two single family residences as defined by the Land Transfer Act. Value of the Consideration for a conveyance or disposition is shown as 'VC'. Land transfer tax payable is shown as 'LTT'.
| For the Value of the Consideration: | Formula |
|---|---|
| up to and including $55,000 | LTT = VC × 0.005 |
| exceeding $55,000 and up to $250,000 | LTT = (VC × 0.01) - $275 |
| exceeding $250,000, for property other than residential | LTT = (VC × 0.015) - $1525 |
| exceeding $250,000 up to $400,000, for residential property | LTT = (VC × 0.015) - $1525 |
| for residential property exceeding $400,000 | LTT = (VC × 0.02) - $3525 |
For further information refer to Ontario Tax Bulletin 2-2005 – Calculating Land Transfer Tax.
