WHEN IS LAND TRANSFER TAX PAYABLE?
Land Transfer Tax is payable at the time the purchaser is registered as the new owner in the Land Title Office on closing. First time homebuyers of newly built homes receive their refund immediately. First time homeburys of resale homes must apply to the government for their refund. HOW IS THE TAX PAID? The purchaser’s solicitor pays the Land Transfer Tax on behalf of the purchaser on the closing date. The purchaser will be required to provide their solicitor closing funds (certified) that will cover the closing expenses. HOW IS THE TAX CALCULATED? The tax is calculated on the value of the consideration for the transfer. In certain circumstances the Land Transfer Tax Act (Act) deems the value of the consideration to be the fair market value of the land. On transfers of residential real property in Ontario, Land Transfer Tax (LTT) is calculated on the purchase price (less a GST calculation, if the property purchased is a newly built home).
