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    Calculating Land Transfer Taxes
    Posted: 2012-09-20 05:00:32


    On October 22, 2007, Toronto City Council approved a new land transfer tax which takes effect onFebruary 1, 2008.

    (a) ½ of 1% (or $5 per $1000) to $55,000, and
    (b) 1% (or $10 per $1000) over $55,000 to $400,000 and
    (c) 2% (or $20 per $1000) over $400,000

    Use FK Feld Kalia’s on-line tool to help calculate land transfer tax for your purchase.

    Land Transfer Tax (LTT) is a tax charged byOntarioto buyers of real estate at the time a deed is tendered for registration with the Land Titles Office. It is sometimes called the “Welcome Tax”.

    LTT is calculated as a percentage of the purchase price of the property as follows:

    (a) ½ of 1% (or .05% or $5 per $1000) to $55,000, and
    (b) 1% (or /1% or $10 per $1000) over $55,000 to $250,000 and
    (c) an additional .5% for all values over $150,000 but under $450,000

    An easy rule of thumb for properties under $250,000 is to take 1% of the value of the property and substract $275 (to account for the .5% reduction in tax for the first $55,000 of value). For example, if the property is worth $100,00 the tax would be calculated as follows:

    $100,00 x .01 = $1,000
    less (275)
    equals LTT of $725

    Use FK Feld Kalia’s on-line tool to help calculate land transfer tax for your purchase.

    There are some situations that involve different calculations, so be sure to consult with your legal advisor to get the proper calculation.

    David Feld is an experienced residential real estate lawyer. You can learn more about him by visiting his website: http://www.feldkalia.com/

    Disclaimer: Content on this website is provided for informational purposes only and does not constitute a legal advice.