Who Pays Land Transfer Taxes in Ontario?

Let’s set the record straight. Buyers pay land transfer taxes. When a buyer acquires property or land (house or condo), they have to pay land transfer taxes to the province once the transaction closes. Sellers are not required to pay land transfer taxes. The only provinces in Canada where buyers don’t have to pay LTT are in Alberta and Saskatchewan.

How Much Are Land Transfer Taxes?

Majority of the time, land transfer taxes are determined by the price of the property you’re buying but the best way to get an accurate number for that is to use a LTT Calculator. This will help you prepare for a more realistic budget and make sure there aren’t any surprises on closing day. Take note that the LTT tax rates have been updated in 2017.

First Time Home Buyers

If you’re a first time home buyer then you might be able to get a refund on LTT in Ontario, British Columbia and Prince Edward Island. The rules are fairly simple for that. You have to be a permanent resident, eighteen years of age, and you must occupy the home within 9 months of the purchase. If you are not eligible then you should make sure you budget yourself accordingly. Get more information about land transfer tax refund here.

How to Pay Land Transfer Taxes

In Ontario, the LTT is payable once the transfer is registered. The timeline for that is 30 days before the closing date. If you are unsuccessful with getting your transfer registered then you must submit a Return on the Acquisition of a Beneficial Interest in Land to the Ministry of Finance. The timeline for that is also 30 days.

Non-Resident Buyers

Foreign buyers who are not residents in Canada are buying properties in Southern Ontario where they pay %15 Foreign Homebuyer’s Tax. This fee is applicable to foreign buyers in addition to the province’s land transfer taxes. If you’re interested in learning more about FHT in Toronto and Vancouver you can start here.

LTT are often overlooked when people are purchasing a home. If you have been thinking about buying a new home or condo then you should be prepared to pay land transfer taxes. Utilize the digital calculator and get a clear and concise picture from the beginning.

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