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