Understanding real estate taxes is essential for budgeting and long-term planning. They include more than just annual property taxes.
When buying, expect to pay land transfer tax — in Toronto, both a provincial and municipal version apply. Sellers, meanwhile, should plan for potential capital gains tax if selling an investment or secondary property.
Annual property taxes fund local services such as schools, parks, and roads. Rates vary by municipality and property type.
If you are renting or investing, HST may apply on new construction or certain commercial properties.
Your realtor and lawyer can help you estimate all tax costs before you buy or sell so there are no surprises.
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