Understanding land transfer tax is essential when buying property in Ontario. At Khan Law, our real estate lawyers explain your costs clearly and help you plan ahead. Let us guide you through every step with confidence and care.
Contact Us ▸If you're buying residential property in Ontario, you’ll need to pay a Land Transfer Tax Ontario on closing. This applies across the province; including in Mississauga, Oakville, and Toronto, and is handled by your real estate lawyer when the title officially transfers to your name. Unless exempt, this tax is payable on all transfers of land or beneficial interest in land.
That includes all types of real estate homes under construction, completed buildings, and attached fixtures. When calculating the land transfer tax in Ontario, the “value of consideration” includes not just the purchase price, but also liabilities assumed, added benefits, and any upgrade costs.
If you're buying in Ontario, you may own an additional Toronto Land Transfer Tax. You can use a ontario land transfer tax calculator to estimate your costs.
If you’re purchasing your first home in Ontario, you may qualify for a Land Transfer Tax refund. This applies to qualifying first-time buyers who meet specific criteria. The refund can cover all or part of the transfer tax land in Ontario, reducing your overall closing costs.
In addition to the provincial tax, anyone involved in a purchase and sale of property in Toronto must also pay the Municipal Land Transfer Tax. This Toronto transfer tax applies to purchases made within city limits on or after February 1, 2008. If you're unsure, use a land transfer tax calculator Toronto buyers often rely on or consult with your real estate lawyer to confirm if it applies.
The Harmonized Sales Tax applies to newly built and substantially renovated homes across Ontario. If you're buying a new home in Ontario or Canada, you’ll likely pay HST unless it's a resale property, which is generally exempt. Buyers using the property as a primary residence or for long-term rental may qualify for an HST rebate.
Calculating land transfer tax Ontario depends on your property's value and whether it's located in a municipality like Toronto with added fees.
While online tools like an Ontario land transfer tax calculator can give you an estimate, they don’t always account for exemptions or legal nuances. At Khan Law, we walk you through every detail to ensure clarity and peace of mind before closing.
At Khan Law, we guide you through real estate transactions with care, clarity, and experience. Our team is here to answer your questions, protect your interests, and make the process as smooth as possible. Reach out for trusted legal support when it matters most.
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Khan Law is a boutique law practice that has been providing legal services to the Greater Toronto Area since the year 2000.