Ontario Regulation 70/91 made under the Land Transfer Tax Act has been amended to clarify how the “de minimis” partnership exemption applies to certain dispositions of a beneficial interest in land, including those occurring in respect of complex real estate structures involving real estate investment trusts and/or layer(s) of limited partnership(s).
Information on the amendments may be found in the Regulatory Registry.
Information may also be found in our publication entitled, Land Transfer Tax “De Minimis” Partnership Exemption: Clarifying Amendments for Certain Dispositions.
When you buy land or an interest in land in Ontario, you pay Ontario's land transfer tax. Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
When you acquire a property or land, you pay land transfer tax to the province when the transaction closes.
Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.
In some cases, land transfer tax is based on the fair market value of the land, for example, where:
If you are a first-time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.
Local municipalities charge a tax on the residential or business property you own. If you have questions about municipal property tax, contact your local municipality. If your property is located in an unorganized territory (an area without municipal organization) of Ontario, property tax is collected through the provincial land tax program administered by the Provincial Land Tax Office in Thunder Bay.
If you buy property in the City of Toronto, you may also pay the City of Toronto's own municipal land transfer tax.
The harmonized sales tax (HST) applies to newly constructed homes or substantially renovated homes, but does not apply to resale homes. Buyers of new homes may receive a rebate of up to $24,000 of the provincial portion (8%) of the HST. If you have any questions about the HST rebate please contact the Canada Revenue Agency at 1 800 959-1953.
The tax rates calculated on the value of the consideration are:
The land transfer tax rate is the same for residents and non-residents of Canada.
Use the table below to calculate land transfer tax.
|For the Value of the Consideration||Formula|
|up to and including $55,000||LTT = VC × 0.005|
|above $55,000 and up to $250,000||LTT = (VC × 0.01) - $275|
|above $250,000, for property other than residential||LTT = (VC × 0.015) - $1,525|
|above $250,000 up to $400,000, for residential property||LTT = (VC × 0.015) - $1,525|
|for residential property above $400,000||LTT = (VC × 0.02) - $3,525|
Where a construction contract is entered into as part of the arrangement relating to the purchase of a vacant lot or lots, the value of the consideration is calculated on the:
All monies must be expressed in Canadian dollars. The land transfer tax statements must set out the value of the consideration in Canadian dollars. The date of currency conversion should be the:
Ontario's land transfer tax is payable when the transfer is registered.
If the transfer is not registered within 30 days of closing, you must submit a Return on the Acquisition of a Beneficial Interest in Land form to the Ministry of Finance, along with the payment of tax within 30 days after the closing date.
Some person(s) do not pay land transfer tax on certain transfers of land. The exemptions include:
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered on title.
Bill 14 Building Opportunity and Securing Our Future Act amended the Land Transfer Tax Act to set out a general anti-voidance rule. This rule applies to transactions that are completed after May 1, 2014. It also applies to transactions that occurred on or before May 1, 2014 if they are part of a series of transactions that is completed after May 1, 2014.
If you overpaid land transfer tax, you can ask the Ministry of Finance for a refund. Here’s how:
There is no time restriction where a refund is requested for land transfer tax paid on registration of a notice or caution where the transfer contemplated in the agreement referred to in the notice or caution did not take place.
First time homebuyers refunds requests must be made within 18 months after the date of the transfer.
All other refund requests must be made within 4 years after the date of payment of the tax.