Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property. If you are purchasing in Toronto, you will also have to pay a municipal land transfer tax in addition to the provincial tax.
Ontario Land Transfer Tax
0.5% on the first $55,000 1.0% on portion between $55,000 – $250,000 1.5% on balance over $250,000 2.0% on anything over $400,000 Qualifying first time buyers receive a $2000 credit
Toronto Land Transfer Tax
0.5% on the first $55,000 1.0% on portion between $55,000 – $400,000 2.0% on anything over $400,000 First time buyers are exempt on the first $400,000