How to Calculate Your Land Transfer Tax

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.

If you found this information useful and plan on buying a home in the next little bit, please save this video. Take care.