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Archive for January, 2014

When purchasing a home in Ontario, a tax known as Land transfer Tax is payable to the Provincial Government.

This tax is calculated on the Purchase Price of the home as such:

Purchase price up to and including $55,000                                        0.5%

Purchase price exceeding $55,000 up to and including $250,000      1.0%

Purchase price exceeding $250,000 up to and including $400,000    1.5%

Purchase price exceeding $400,000                                                    2.0%

 

First Time Buyer Rebate

However, First Time Buyers are granted a refund to offset this Land Transfer Tax up to a maximum refund of $2,000.

For example, a home purchased for $300,00 has a Land Transfer Tax calculation as follows:

First $55,000                          $ 275

$55,000 to $250,000              $1950

$250,000 to $300,000            $ 750

                                               ———

Tax payable                           $2975

Less LTT Rebate                   $2000

                                               ———

Total LTT payable                  $ 975

For more information on the Land Transfer Tax Rebate please visit http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html

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