Who Is Exempt from Land Transfer Tax in Ontario

“Greater Golden Horseshoe Region” means the land area comprised of the geographic areas of the following municipalities: The Ontario Land Transfer Tax is an additional barrier when it comes to buying a home, so the Canadian government offers a discount to first-time home buyers. This serves to encourage individuals to buy a home and can help them cover the full cost. The author was unable to find a reliable online MLTT calculator for commercial real estate in the city of Toronto. However, if you are considering buying a commercial property in the City of Toronto, an Ontario lawyer can quickly confirm the mlTT amount to be paid in such a scenario by logging into Ontario`s online land registration system. If you are a first-time home buyer, you may be entitled to a refund of all or part of the real estate transfer tax. Based on the above, it can be assumed that LTT is still payable, unless the fact of the transfer falls under one of the regulated exemptions or results in zero tax. (a) the person from whom the information was obtained; or eligible first-time buyers are entitled to discounts, not full exemptions from the payment of land transfer tax. The maximum rebate under the Ontario Land Transfer Tax Act is $2,000.00 (the maximum rebate is reached when the purchase price is $227,500.00) and under the Municipal Land Transfer Tax Act is $3,725.00 (this maximum rebate is reached when the purchase price is $400,000.00), no matter how many eligible first-time home buyers. Therefore, the maximum discount available to eligible first-time buyers is $5,725.00 per property, regardless of the number of buyers. If the discount exceeds the land transfer tax payable, the government will only reimburse the amount of the land transfer tax, no more. If the property transfer tax otherwise payable exceeds the rebates, the difference must be paid by the buyers. According to Ontario`s land transfer tax rates, first-time home buyers with a home of $227,500.00 or less avoid tax altogether.

According to Toronto`s land transfer tax rates, first-time home buyers with a home of $400,000 or less avoid tax entirely. Transfers of land between affiliates, No consideration, Certain transfers between spouses, Certain easements granted to oil or gas pipelines, Certain transfers of family or family businesses, Other exceptions include the sale of land by an employee to the employer, certain life lease shares, hospital restructurings, charities, certain transfers under the City Water and Wastewater Transfer Act and certain acquisitions under the Toronto Islands Residential Community Stewardship Act, 1993. The City of Toronto`s land transfer tax rate is calculated based on the sale price of the property in question and whether or not the property is considered residential property. The Law exempts the registration of any promotion if the seller is the spouse or former spouse of the purchaser and sufficient information is provided to the Minister to determine that one of the following conditions applies: If you wish to apply to the first purchaser for land transfer tax, you must complete an application form. The refund will be granted once the fees have been registered, submitted and paid. If you do not benefit from the discount when registering the land transfer tax, you must pay the amount in full – then you have 18 months to submit the reduction request. The total Ontario land transfer tax would be $6,475 – $2,000 = $4,475 “Land transfer tax is calculated on the basis of the `value of consideration` under subsection 1(1) of the Act. It includes the purchase price, liabilities assumed, benefits granted, ancillary costs and the cost of upgrades. In some cases, the value of the consideration is considered the fair value of the property, i.B fifty-year leases and transfers between companies and shareholders. In the example above, you will have to pay $3,725 in real estate transfer tax based on a $350,000 home purchase. First-time buyers of properties with a purchase price greater than $368,333 receive the full $4,000 tax refund and must pay everything left on the balance of the land transfer tax. .

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