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[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]
XIII. CLOSING COSTS In addition to legal fees and disbursements and title insurance policy premiums paid by the buyer, purchase transactions in Ontario are subject to land transfer taxes as set out below. The seller is typically responsible for their own legal fees and the agent/brokerage commission, if applicable. Land Transfer Tax A buyer in Ontario is required to pay a land transfer tax on the registration of any transfer/deed. For commercial properties, the tax is currently calculated at the following rates: - one-half of 1% on the first $55,000 of the purchase price; - 1% on the balance of the purchase price up to and including $250,000; - 1.5% on the balance of the purchase price up to and including $400,000; and - 2% on the balance of the purchase price at $400,001 and above.
For residential properties, the tax is calculated at the same rates as for commercial properties, except where the land contains one or two single- family dwellings and the property is valued at more than $2,000,000. For such transactions, the 2% tax rate only applies from $400,001 up to and including $2,000,000, and a 2.5% tax rate applies to the balance of the purchase price for the property. In the City of Toronto, a municipal land transfer tax is also due on the registration of a transfer/deed in addition to the provincial land transfer tax. This municipal land transfer tax is calculated as follows: - for properties containing at least one but no more than two single-family residences:
Value of Consideration
MLTT Rate
Up to and including $55,000.00
0.5%
$55,000.01 to $250,000.00
1.0%
$250,000.01 to $400,000.00
1.5%
$400,000.01 to $2,000,000.00
2.0%
Over $2,000,000.00
2.5%
Over $3,000,000 and up to $4,000,000
3.5%
Over $4,000,000 and up to $5,000,000
4.5%
Over $5,000,000 and up to $10,000,000
5.5%
Over $10,000,000 and up to $20,000,000
6.5%
ILN Real Estate Group – Buying and Selling Real Estate Series
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