The Ontario Government mandates every buyer of real property to pay a Land Transfer Tax on registration of the transfer or deed. The amount that you are liable to pay is calculated on a sliding scale, i.e.
- 0.5% of the first $55,000 of the price tag, in addition to
- 1.0% of the sum surpassing $55,000 up to and including $250,000, notwithstanding
- 1.5% of the sum surpassing $250,000 up to and including $400.000, notwithstanding
- 2.0% on the sum over $400,000.
In the case of a transfer involving private property, the calculation depends on the value of the property. For first time homebuyers, you may be eligible for a discounted Ontario Land Transfer Tax. Non-private estates are not liable to the 2% tax charge. The tax is charged at the 1.5% rate regardless of the aggregate cost of the property.