HomeHow much are land transfer taxes in Markham?
If you were to purchase the average home in Markham it would cost $23,436 in land transfer taxes — this is the Ontario provincial land transfer tax based on the average home price in Markham, Canada. If you are a first-time homebuyer there are rebates available that can help reduce the total amount of land transfer tax you will have to pay. There is no municipal land transfer tax in Markham — only the City of Toronto collects municipal land transfer tax.
Read more: Markham Housing Market Report
Markham land transfer tax rates
The land transfer tax on homes in Markham is calculated at the provincial level. Total land transfer tax is calculated based on a marginal tax which is calculated based on the purchase price of the home. The marginal tax rates are listed in the table below based on the price of the property purchased.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| More than $55,000 up to $250,000 | 1% |
| More than $250,000 up to $400,000 | 1.5% |
| More than $400,000 up to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
How to avoid paying land transfer tax in Markham?
All properties in Ontario are subject to land transfer tax aside from a few situations in which you can avoid paying land transfer tax in Canada — all of which can apply to the city of Markham. It is important to consult and expert to know if you are required to pay land transfer tax. Some potential situations that allow for land transfer tax exemptions in Ontario are:
- property transfers betweeen spouses
- property transfers of farmed land between family members
- property transfers to a family business corporation
Land transfer tax rebates in Ontario
There is a first-time home buyer land transfer tax rebate in Ontario which helps reduce the amount of provincial land transfer tax paid when purchasing a home in Ontario. The maximum rebate offered in Ontario is $4,000 which would cover land transfer tax on homes valued up to $368,000 in full.
Markham land transfer tax example
Let's see how much land transfer tax you would have to pay if you purchased a home in Markham, Ontario for $500,000. If you purchased a $500,000 home in Markham you would have to pay $6,475 in land transfer tax. This land transfer tax would decrease to $2,475 on the purchase of a $500,000 home if you are able to apply the first-time homebuyers rebate. Here is the calculation breakdown:
-
First $55,000
$55,000 home value
x 0.50% tax rate
= $275 land transfer tax
-
More than $55,000 up to $250,000
$195,000 home value
x 1.00% marginal tax rate
= $1,950 land transfer tax
-
More than $250,000 up to $400,000
$150,000 home value
x 1.50% marginal tax rate
= $2,250 land transfer tax
-
More than $400,000 up to $2,000,000
$100,000 home value
x 2.00% marginal tax rate
= $2,00 land transfer tax
-
All tiers
$275 + $1,950 + $2,250 + $2,000
= $6,475 total Markham land transfer tax