It’s time for you to learn how to calculate land transfer tax in Toronto. The LTT rates in Toronto are marginal tax rates, which means that calculating your tax rate will take a little bit of math.
Let’s say the property you are looking to purchase costs $250,000. Here is how you would calculate the LTT owed:
$55,000 x 0.5% = $275
($250,000.00 - $55,000) x 1.0% = $1,950
Total LTT = $2,255
Because the land transfer tax uses a marginal tax rate, you must multiply the part of the purchase value in each tax bracket by its rate and then add each of these numbers together. Then, any rebates you may be eligible for would be subtracted from your total LTT owed.
To check what tax will be owed on a property you are interested in, use Toronto’s LTT tax calculator on the municipal’s website.