Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs.

Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.

Here in Ontario, if you purchase a property for $400,000, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your provincial tax bill will be $4475.00. In addition, in the City of Toronto, there is a municipal land transfer tax. First time buyers are exempt for the first $400,000 in purchase price, but if you have ever owned a home before, anywhere in the world you will have to pay this additional tax. On $400,000 this Miller tax will be $3725.00 for a grand total of $8200.00.

Land Transfer Tax ( go to calculator )
Up to $55,000 X .5 % of 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

City of Toronto Land Transfer Tax (1st time buyers exempt from the first $400,000)

Up to $55,000 x .5% of the property value

From $55,000 to $400,000 x 1% of the property value

From $400,000 thereafter x 2% of the property value