|
|
Land Transfer Tax (LTT)
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) 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
$100,000 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.
|
|
|
|