Real Estate Tax: A Complete List
When you are buying or selling a home in Ontario, Canada, real estate transactions involve Land transfer tax, Property tax, Non Resident Seller Tax, HST, Capital gains tax, Income tax, and Foreign Buyers Tax.
How much is land transfer tax in Ontario
It varies with the purchase price with the following rates applied. You can easily get calculate the exact amount via a calculator
| Amount | 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 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| Over $2,000,000.00 | 2.5% |
Municipal Land Transfer Tax
These may vary by city, the tax of Toronto is the same as the Ontario provincial tax.
Property tax
It is calculated based on the municipal tax rates, education rate, and property value. Generally the higher your home value ( (property value for tax is usually lower than current market value), the higher your property taxes. For details please review https://www.ontario.ca/page/property-tax
Capital Gain Tax
- 50% of the net between the selling price of your asset and the adjusted cost is taxable if it is an investment property.
- However, you don’t need to pay capital gain tax if the property is your primary residence.
Non-Resident Speculation Tax (NRST)
NRST is applicable to foreigners when you buy residential properties in the Greater Golden Horseshoe Region, Toronto included. Please click and review the details on NRST rebate and exemptions
Income Tax
When you plan to rent out your property, income tax is applicable. Please refer to the CRA website for details.
When is hst applicable on a property sale in ontario
HST is applicable to most of the costs such as real estate commission, legal fee, home inspection fee, etc
Residential Resales
HST is not applicable. But if the home has substantial renovations and modifications, the HST may be applied.
New home Pre construction Condos
HST is factored into the purchase price by the builder. If you need to pay HST separately, you could apply for HST rebates by yourself if qualified. Please refer to HST New Housing Rebates for details.
