Land Transfer Tax Calculation

To calculate the Land Transfer Tax on your purchase, use the following formula:

.005 x the first $55,000
PLUS
.01 x from $55,000 to $250,000
PLUS
.015 x remainder of the purchase price
PLUS
.005 surcharge on single family homes and duplexes for any amount of $400,000

The application of the above tax rates is more readily expressed in the following chart:

VALUE OF CONSIDERATION MULTIPLE SUBTRACT
$0-$55,000 -------------------- .005 -------- $0
$55,001-$250,000 ----------- .010 -------- $275
$250,000 and up ------------- .015 -------- $1,525
$400,000 and up ------------- .020 -------- $3,525

To determine the land transfer tax payable for a particular transaction, take the total value of consideration and then multiply and subtract that value by the appropriate factor. For example, where the toal sale price (value of consideration) for the conveyance of a particular property is $125,000, the land transfer tax payable is calculated as:

$125,000 X .010 - $275 = $975

Therefore, the land transfer tax payable on the above transaction is $975.