What Taxes Do I Have To Pay When Buying Or Selling
A House Or Condo In Toronto

What Taxes Do I Have To Pay When I Buy Or Sell Property In TorontoHARMONIZED SALES TAX (HST)  is a 13% sales tax that applies to all goods and services purchased in Ontario.   It is a harmonized tax in that it is a combined tax collected by both the federal and provincial governments.  Out of the 13% HST,  a 5% portion goes to the Federal government and 8% portion goes to the government of Ontario.

If you purchase a NEW condo or house from a builder HST will apply. 

Buyers of NEW homes & condos can apply for federal and provincial government rebates to offset portions of the HST.

The HST does not apply on the purchase price of RESALE homes and condos but applies to all the services required in the purchase or selling of a property.  This includes real estate commissions, lawyers' fees, moving costs and home inspections.

LAND TRANSFER TAXES (LTT)
The Ontario Land Transfer Tax applies when one buys real estate in Ontario and does not apply to the Seller.

One can calculate it by going to my Land Transfer Tax Calculator. If one buys in Toronto, a second land transfer tax from the City of Toronto also applies.  The Toronto Land Transfer Tax essentially doubles the amount of total land transfer tax a Buyer will pay.

Again, if you are considering buying in Toronto you can go to my Land Transfer Calculator to determine how much land transfer tax you will pay.

First time buyers can get a rebate of up to $4,000 which is equivalent to the first $368,000 of a property's value for the Ontario Land Transfer Tax and a rebate of up to $4,475 which is equivalent to the first $400,000 of a property's value for Toronto's land transfer tax.

FOREIGN BUYER'S TAX
If you are not a citizen or permanent resident of Canada, your purchase of a residential property in Toronto will be subject to 15% Foreign Buyer's Tax called the Non-Resident Speculation Tax (NRST).  

FOREIGN SELLER'S TAX 
Be aware that there are tax implications for international or non-resident owners when they sell property in Toronto.  An international seller may be subject to a non-resident withholding tax of 25% on the sale price of the property.  Further details can be found on the Canada Revenue Agency website.  One should consult with their own accountant to fully understand the Canadian tax rules and implications of selling a property in Toronto as a foreign owner.

Victoria Boscariol is a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States. 

How The Real Estate Market Works In Toronto Canada 

Live Outside Canada? International Buyers Guide To Purchasing Real Estate In Toronto 

Valuable Advice For Buyers From The United States Purchasing Real Estate In Toronto Canada 

Real Estate Prices Around The World & Why Buying A Toronto Condo Is A Shrewd Investment

See the most comprehensive GUIDE to Yorkville Toronto Condos

Renting Vs Buying A Toronto Condo. Which is the better option?

Toronto Condo Checklist What you need to ask BEFORE you buy

Investing in New & Pre-construction Condos in Downtown Toronto?  How to get the Maximum Return On Investment

Thinking Of Selling Your Toronto Luxury Condo?  Contact Victoria

3 Bedroom Condos In Toronto Why There Are So Few Of Them

The Truth About Downsizing To A Downtown Toronto Condo
 

Moving On? Divorce And Buying Or Selling Your Toronto Condo

 

Requirements For International Buyers Of Toronto Real Estate ...What You Need To Know Before You Begin Your Property Search

Canadian Banks, Funds & Financing For International Buyers Of Toronto Real Estate

Taxes And International Buyers Of Toronto Real Estate

Going From Buyer To Toronto Property Owner - The Real Estate Transaction Process In Toronto

Closing Costs For Buyers Of Toronto Real Estate

Selecting And Working With A Real Estate Lawyer When Buying Property In Toronto Canada 

Understanding The Paperwork..Important Elements of The Agreement Of Purchase & Sale When Buying A Toronto House Or Condo

How To Make Make An Offer & Negotiate The Purchase Of A Toronto Home Or Condo