Effective April 21, 2017, a 15% Non-Resident Speculation Tax is imposed on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) or taxable trustees. This new tax is in addition to Ontario's current Land Transfer Tax.
This page provides general guidelines on the calculation of land transfer tax payable on every registration and disposition of land in Ontario.
The information on this page does not replace the law found in the Land Transfer Tax Act (Act) and related regulations.
Land transfer tax is payable on every conveyance of land tendered for registration and every unregistered disposition of a beneficial interest in land, unless specifically exempt under the Act or regulations.
The definition of land as defined in subsection 1(1) of the Act is broad and includes lands, buildings, structures, structures to be constructed, fixtures and any interest in these.
Land transfer tax is calculated on the value of the consideration as defined in subsection 1(1) of the Act. It includes the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades. In some instances, the value of the consideration is deemed to be the fair market value of the land. For example, leases with terms that can exceed fifty years and certain transfers between corporations and shareholders.
For the definitions of value of the consideration and land, please see Definitions or the Act.
Where a construction contract is entered into as part of the arrangement relating to the purchase of a vacant lot or lots, the value of the consideration is calculated on the:
All monies must be expressed in Canadian dollars. The land transfer tax statements must set out the value of the consideration in Canadian dollars. The date of currency conversion should be the:
Effective January 1, 2017, the tax rates for land transfer tax will depend on the date of the agreement of purchase and sale.
If an agreement of purchase and sale is entered into after November 14, 2016, and registration or the disposition occurs on or after January 1, 2017, the tax rates on the value of the consideration are as follows:
For the definition of single family residence, see Definitions or the Act.
The following rates of land transfer tax apply to all registrations and dispositions that occur prior to January 1, 2017. Tax is calculated on the value of the consideration at the following rates:
For transfers with agreements of purchase and sale that were entered into on or before November 14, 2016, the above rates will apply regardless of the date of registration or disposition.
Teraview, the software used to access Ontario's electronic land registration system, will not be able to accommodate the transitional tax rates. Effective January 1, 2017, all electronic registrations will be processed at the new tax brackets and tax rates. Accordingly, anyone who has overpaid the land transfer tax may claim a refund of the portion of land transfer tax overpaid. In the alternative, transferees may pre-pay land transfer tax at the Ministry of Finance.
Documentation may be submitted to:
Ministry of Finance
Land Taxes Section
Compliance Branch
33 King Street West
Oshawa ON L1H 8H9
For a transfer of land or disposition of beneficial interest in land in which the value of the consideration equals $400,000:
Total land transfer tax payable = $4,475.
For a quick calculation of land transfer tax, refer to the following formulae. Value of the consideration for a conveyance or disposition is shown as VOC. Land transfer tax payable is shown as LTT. Single family residence as defined in the Land Transfer Tax Act is shown as SFR.
If the agreement of purchase and sale was entered into after November 14, 2016, the tax rates for registrations or dispositions that occur on or after January 1, 2017, are as follows:
For the value of the consideration:
If the agreement of purchase and sale was entered into:
For the value of the consideration:
Effective date | Residents of Canada | Non-residents of Canada and trustees for non-residents of Canada | |
---|---|---|---|
All land | All land | ||
January 1, 2017 (unless grand-parented due to the agreement of purchase and sale being entered into on or before November 14, 2016) |
Amounts up to and including $55,000: 0.5% Amounts exceeding $55,000, up to and including $250,000: 1.0% Amounts exceeding $250,000, up to $400,000: 1.5% Amounts exceeding $400,000: 2.0% Amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5% |
Same rate as for residents of Canada | |
May 7, 1997 | Amounts up to and including $55,000: 0.5% Amounts exceeding $55,000, up to and including $250,000: 1.0% Amounts exceeding $250,000: 1.5% Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0% |
Same rate as for residents of Canada | |
Unrestricted land | Land that is not unrestricted land | ||
June 1, 1989 | Amounts up to and including $55,000: 0.5% Amounts exceeding $55,000. up to and including $250,000: 1.0% Amounts exceeding $250,000: 1.5% Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0% |
Same rate as for residents of Canada | 20% |
January 1, 1986 | Amounts up to and including $55,000: 0.5% Amounts exceeding $55,000: 1% Amounts exceeding $250,000, where the land contains one or two single family residences: 1.5% |
Same rate as for residents of Canada | 20% |
April 11, 1979 | Amounts up to and including $45,000: 0.4% Amounts exceeding $45,000: 0.8% |
Same rate as for residents of Canada | 20% |
April 20, 1977 | Amounts up to and including $35,000: 0.3% Amounts exceeding $35,000: 0.6% |
Same rate as for residents of Canada | 20% |
April 10, 1974 | Amounts up to and including $35,000: 0.3% Amounts exceeding $35,000: 0.6% |
20% | 20% |
Effective date | Residents of Canada | Non-residents of Canada and trustees for non-residents of Canada | |
---|---|---|---|
All land | All land | ||
January 1, 2017 (unless grand-parented due to the agreement of purchase and sale being entered into on or before November 14, 2016) |
Amounts up to and including $55,000: 0.5% Amounts exceeding $55,000, up to and including $250,000: 1.0% Amounts exceeding $250,000, up to $400,000: 1.5% Amounts exceeding $400,000: 2.0% Amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5% |
Same rate as for residents of Canada | |
May 7, 1997 | Amounts up to and including $55,000: 0.5% Amounts exceeding $55,000, up to and including $250,000: 1.0% Amounts exceeding $250,000: 1.5% Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0% |
Same rate as for residents of Canada | |
Unrestricted land | Land that is not unrestricted land | ||
July 19, 1989 | Amounts up to and including $55,000: 0.5% Amounts exceeding $55,000, up to and including $250,000: 1.0% Amounts exceeding $250,000: 1.5% Amounts exceeding $400,000, where the land contains one or two single family residences: 2.0% |
Same rate as for residents of Canada | 20% |
April 21, 1983 | Not applicable | Not applicable | For agricultural land, only, 20%. Note: a disposition of land is deemed to have occurred if a corporation owning agricultural land becomes a non-resident of Canada through the sale of shares or through amalgamation |
April 10, 1974 | Not applicable | Not applicable | Not applicable |
The electronic land registration system automatically calculates the land transfer tax payable based on the amount in box (g) 'VALUE of land, building, fixtures and goodwill subject to Land Transfer Tax' in the Consideration tab. The system also takes into account any exemptions from tax claimed.
Where the value of the consideration is greater than $400,000, the > $400,000 tab of the land transfer tax section of the electronic land registration system must be completed. Statement 9031 must be selected:
Also, one of the following three statements must be selected:
Selecting statement 9038 requires the apportioned amount of the value of consideration be inserted where AMOUNT is indicated, as well as additional text inserted describing the use of the remainder of the land where TEXT is indicated. Please note that "vacant" or "no use" is not considered to be another use.
"land" includes lands, tenements and hereditaments and any estate, right or interest therein, a structure to be constructed on land as part of an arrangement relating to a conveyance of land, a leasehold interest or estate, the interest of an optionee, the interest of a purchaser under an agreement to sell land, or goodwill attributable to the location of land or to the existence thereon of any building or fixture, and fixtures.
"single family residence" means a unit or proposed unit under the Condominium Act, 1998 or a structure or part of a structure that is designed for occupation as the residence of a family, including dependants or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,
"value of the consideration" includes,
in the case of a conveyance of land from a trustee to another trustee (whether or not either trustee is so described in the conveyance) where,
If this page does not completely address your particular situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact:
Ministry of Finance
Land Taxes Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H9