Upcoming Changes To Ontario Land Transfer Tax Rates

The province of Ontario is proposing to increase land transfer tax rates with effect from January 1, 2017. The Building Ontario Up for Everyone Act (Budget Measures), 2016 received first reading on November 16, 2016 and is expected to come into force before the end of the year. For acquisitions closing after 2016, the land transfer tax rate for any property, other than properties that contain one or two single-family residences, will be increased to 2% from 1.5% for the portion of the consideration above $400,000. The land transfer tax rate on properties that contain one or two single-family residences will remain at 2% for the portion of the consideration between $400,000 and $2 million and will be increased to 2.5% for the portion of the consideration that exceeds $2 million.