Buyers who are not first-time buyers purchase a $750,000 home in Ontario, outside Toronto, with a $150,000 down payment. What provincial Land Transfer Tax is payable?
Correct Answer
B) $11,475
Ontario LTT is charged on the price, not the mortgage: 0.5% of the first $55,000 ($275) + 1% of $55,000 to $250,000 ($1,950) + 1.5% of $250,000 to $400,000 ($2,250) + 2% of the $350,000 above $400,000 ($7,000) = $11,475.
Why This Is the Correct Answer
Applying each bracket to the $750,000 price gives $275 + $1,950 + $2,250 + $7,000 = $11,475. No first-time buyer refund applies.
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A client in Toronto is purchasing a $800,000 home. In addition to Ontario's Land Transfer Tax, what additional tax must they pay?