What is a Land Transfer Tax?
When budgeting to buy a property, you need to consider all the costs associated with that purchase. A deposit on signing, a downpayment to the bank and closing costs. One big, misunderstood cost is land transfer tax. What is it? How much is it? Do I have to pay it?
Well, just like you pay tax on a car or a coffee, you pay it on the purchase of a home and it varies based on the price of the home. In Toronto, you have to pay two taxes - municipal and federal. As a first time home buyer though, you get a credit back from the government; something you may have heard about?
Use the calculator below to help you know the math for your upcoming purchase, and be sure to account for this figure in your ‘closing costs’ calculations.
