In its 2016 Ontario Economic Outlook and Fiscal Review, released
on November 14, the Government of Ontario has proposed a number of
significant changes to the Province's Land Transfer Tax (LTT)
regime. By way of background, the LTT is payable on the purchase of
any land or any interest in land and is generally calculated on the
basis of the purchase price.
Specifically, the Government is proposing to:
- Update LTT rates and brackets;
- Enhance support for first-time homebuyers; and
- Restrict the refund for first-time homebuyers to Canadian
citizens and permanent residents.
Increases to LTT rates and brackets
Under the proposal, LTT rates will increase effective January 1,
2017. This is being done by adding additional brackets for
high-value transactions. In the case of the purchase of any type of
land other than residential - including commercial, industrial,
multi-unit residential and agricultural properties - there will be
a new bracket for purchases
