If you’ve ever bought a home in Brampton or anywhere else in Ontario for that matter, you’ve probably paid a land transfer tax with your closing costs. But if you’re a new home buyer, you may not know what a land transfer tax is.
Essentially, when you purchase a home, the Province of Ontario will apply a special levy known as the land transfer tax. It is quite easy to calculate, and is based on the property value. You will pay:
Up to $55,000 X .5 % of total property value
From $55,000 to $250,000 X 1 % of total property value
From $250,000 to $400,000 X 1.5 % of total property value
From $400,000 up X 2 % of total property value
You can also click here to calculate your land transfer tax online.
The City Of Toronto has recently approved new land transfer taxes just for the municipality of Toronto that are set to take place on February 1, 2008.
The land transfer tax will work as follows:
- one-half of one per cent on the first $55,000 in property values
- one per cent on the next $345,000 in property values
- two per cent of the value residential units exceeding $400,000 for residential transactions
- one and a half per cent on the remaining value of up to $40 million and one per cent above that on commercial properties
A rebate of up to $3,725 will apply to first-time purchasers of homes. This means a full rebate for first time buyers of homes valued at $400,000 or less. If you would like more information on this, click here. You can also visit the City of Toronto’s Municipal Land Transfer Tax page. These new taxes do not affect Brampton.
But no matter where you buy, keep in mind that you must pay this land transfer tax when you purchase a property, so remember to budget this tax in your closing costs so there are no surprises at the end!
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For land transfer tax purposes, if the property is within the municipality of Toronto, it will be taxed as such. Lang
What is the boundary to be considered as City of Toronto? since we usually refer to as GTA, it is a bit unclear of where is the clearcut.