Tax Rates in 2024

Homeownership in Ontario comes with a variety of taxes that homeowners need to consider. These taxes include:

1. Buying a Home: Homebuyers pay a provincial land transfer tax (and sometimes a municipal one in Toronto).
2. Selling a Home: Profits from selling a primary residence are exempt from capital gains tax, thanks to the principal residence exemption. However, secondary properties like cottages or rental homes are taxable.
3. Recurring Taxes: Property taxes are the most common recurring tax. They fund municipal services like public transit, garbage collection, road repairs, and emergency services. Taxes are calculated based on the property’s assessed value and the municipal tax rate. These taxes can vary significantly by location.

Some municipalities also charge taxes on vacant properties to encourage renting and increase housing supply.

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