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 on our web page entitled, Land Transfer Tax 'De Minimis' Partnership Exemption: Clarifying Amendments for Certain Dispositions. NOTE: This web page was revised on November 15, 2016 to extend the Special Voluntary Disclosure Policy (SVDP) to June 30, 2017. The SVDP applies only to dispositions that occurred on or before February 17, 2016. For dispositions on or after February 18, 2016, the SVDP is not applicable, and returns and remittances continue to be due the later of the 30th day after the date of the disposition and January 1, 2017.
When you buy land or an interest in land in Ontario, you pay Ontario's land transfer tax. Land includes, but is not limited to, any buildings, buildings to be constructed, and fixtures (such as light fixtures, built‑in appliances and cabinetry).
When you acquire land or a beneficial interest in 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, such as in the following examples:
The Minister of Finance has been granted the authority to make a regulation regarding the collection of additional information about the transferee and the transfer of land from everyone who is required to make land transfer tax statements, file a land transfer tax affidavit, or file a Return on the Acquisition of a Beneficial Interest in Land.
The minister may use the information for the administration and enforcement of the Land Transfer Tax Act. In addition, the minister may use the information, without personal identifiers, for the purposes of compiling statistical information and for developing and evaluating economic, tax and fiscal policy.
The requirement to provide additional information will not be in effect until the minister files such a regulation, and the requirements in the regulation take effect.
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.
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, but are not limited to:
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. To request a refund, follow the steps below:
Ministry of Finance
Land Taxes Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H9
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 homebuyer refund 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.
If you have trouble accessing one of these documents in your browser: