If you are buying a home in Ontario, we all have to pay a provincial land transfer tax. Here is a simple formula you can use to calculate it for any property. The land transfer tax formula is 2% of the purchase price minus $3,525.
So let's use this formula to calculate the land transfer tax on a $600,000 home. If you take your purchase price of $600,000 and multiply that by 2%, you'll get $12,000. Then you subtract $3,525, and you get an Ontario land transfer tax of $8,475.
Now, if you live in Toronto, your land transfer tax would be the same formula, only at the end, you would double it. So a home valued at $600,000 would have a land transfer tax of $16,950.
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