On Thursday, Finance Minister Dwight Duncan unveiled new tax measures in the province’s Economic Outlook and Fiscal Update and that includes tax relief for first time home buyers.
Under the news rules which are effective immediately, first-time home buyers will now be eligible for a refund of land transfer tax of up to $2,000.00 on resale homes. Before now, the refund program only applied to new home purchases.
LAND TRANSFER TAX
Ontario’s land transfer tax is payable whenever someone acquires an interest in land and it is usually calculated based on the value of the consideration (usually the sale price) of the land. It is generally payable at the time of conveyance. Tax rates and thresholds have not changed since 1997 and are calculated as follows:
0.5% of the value of consideration up to and including $55,000,
1.0% of the value which exceeds $55,000 up to and including $250,000, and
1.5% of the value of the consideration which exceeds $250,000, and
2.0% of the amount by which the value of the consideration exceeds $400,000 for
land that contains at least one and not more than two single family residences.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg