How is Ontario land transfer tax calculated for a first-time buyer purchasing a $500,000 home outside the City of Toronto?
Correct Answer
C) 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000, 2% above, less the refund
Section 2(1) of the Land Transfer Tax Act sets 0.5% up to $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000 and 2% above $400,000. On $500,000 that is $6,475, and the first-time refund of up to $4,000 reduces it to $2,475.
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