Buyers in most areas will have to add Land Transfer Taxes to their closing costs.
These taxes which are levied on properties that are changing hands, are the responsibility of the buyer. Ontario taxes can range from 0.5% to 2.5% of the total purchase price of the property.
This multi-tiered taxation system can sometimes be difficult to understand. For example, if you buy a property for $500,000 in Ontario, 0.5 percent is charged on the first $55,000. 1 percent is charged on the portion from $55,000 – $250,000, then the amount from $250,000 – $400,000 range is taxed at 1.5 percent and lastly $400,000 – $2,000,000 is taxed at a rate of 2%. In this example your total provincial tax bill would be $6, 475.00.