Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs.
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.
Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for Up to $800,000 in Ontario, for example, .5 per cent is charged on the first 55,000, 1 per cent is charged on $55,001 – $250,000 while the $250,0001 – $400,000 range is taxed at 1.5 per cent and the remainder over $400,000 is at 2%. Anything Over $2mil is at the rate of 2.5%
Your total tax bill for $800,00 would be $10,675.00.
The following list shows Land Transfer Taxes by province.
Land Transfer Tax
Up to $55,000 x 0.5% of total property value
From $55,001 – $250,000 1 % of total property value
From $250,001 – $400,000 X 1.5 % of total property value
From $400,000 up X 2 % of total property valueOver 2 Million x 2.5% of total property value
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