A buyer who is not a first-time buyer purchases a $400,000 home in Ontario, outside Toronto. What is the provincial Land Transfer Tax payable?
Correct Answer
A) $4,475
Under s. 2(1) of the Land Transfer Tax Act: 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) = $4,475. There is no additional tier between $250,000 and $400,000, and the 2% rate starts only above $400,000.
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