New rules for LTT start January

The rates for land transfer tax (LTT) will be going up in the new year. The LTT rate on amounts ontario-land-transfer-tax-refundexceeding $400K will be subject to a tax rate of 2%, up from the current 1.5%. In addition, the LTT rate is also increasing on higher value residential properties. It will go from 2% to 2.5% on amounts exceeding $2 million. With the prices in the GTA, that will apply to a significant number of purchases. On the other end of the spectrum, Ontario is doubling the rebate on the LTT for first-time homebuyers to $4,000.  Once the changes take effect, January 1, first-time buyers won’t pay any land transfer tax on the first $368,000 of a purchase price.

See the detailed guidelines here.

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