The Province of Ontario charges a tax on real estate purchases called the Land Transfer Tax. It's one of your "Closing Costs".
The calculation is based on the purchase price of the property. It's based on tiered pricing. Here's how it's caculated:
Add the following together:
0.5% on the first $55,000
plus 1.0% of the amount from $55,001 to $250,000
plus 1.5% of the amount in excess of $250,001 to $400,000
plus 2.0% of the amount in excess of $400,000
OR
Use the following table:
Purchase Price | Calculation of LTT |
0 - 55,000 | .005 x Amount |
55,001 - 250,000 | (.01 x Amount) minus 275 |
250,001 - 400,000 | (.015 x Amount) minus 1,525 |
400,000 + | (.02 x Amount) minus 3,525 |
