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Land Transfer Tax (LTT)

    Land Transfer Tax
Land Transfer Tax (LTT) is a tax charged by Ontario to 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) 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 $100,000 the tax would be calculated as follows:
$100,000 x .01 = $1,000
less (275)
equals LTT of $725

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