If you are buying a home, cottage, vacant lot, commercial property or farm, you will be paying the Ministry of Finance a Land Transfer tax. This is a graduated percentage of the property you are buying.
Here’s the schedule for that graduated tax:
- 0.5% of the value of the consideration up to and including $55,000,
- 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
- 1.5% of the value of the consideration which exceeds $250,000, and
- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
I find it much easier to calculate using a Land Transfer Tax Calculator…click on the image above or click here for a link to a calculator: http://www.macnaughtonlaw.com/landtax.htm
Some Municipalities, such as Toronto charge an additional Land Transfer Tax when you buy…but there is no such extra tax on the Bruce Peninsula.
You pay this tax on closing and it is usually taken care of by your lawyer.
This is an additional cost to your purchase and should be taken into consideration when planning your finances.
For more information you can go to the Ministry of Finance website at: http://www.fin.gov.on.ca/en/tax/ltt/
Kathy Dimaline is a Real Estate Broker for RE/MAX Grey Bruce Realty Inc. The comments on this Blog are the opinions, only, of Kathy Dimaline and do not constitute any legal advice or legal opinion and does not represent the interests or opinions of RE/MAX Grey Bruce Realty Inc., brokerage.