The transfer tax is calculated in relation to the base amount according to the following rates:
- portion of base amount up to $55,200: 0,5 %
- portion of base amount between $55,200.01 and $276,200: 1,0 %
- portion of base amount between $276,200.01 and $500,000: 1.5 %
- portion base amount exceeding $500,000.01: 3,0 %
Take, for example, a property purchased for $520,000, whose value on the roll is $527,000 and consideration stipulated is $520,000.
Market value = Value on valuation roll x Comparative factor:
In 2023 : $527,000 X 1.20 = $632,400
The higher of the following three amounts is taken as the base amount:
- The consideration stipulated: $520,000
- The market value: $632,400
- The sale price: $520,000
Thus, the taxation basis is $632,400. The transfer tax is $9,815 for 2023, calculated as follows:
- $55,200 X 0,5 % = $276
- $221,000 X 1,0 % = $2,210
- $223,800 X 1,5 % = $3,357
- $132,400 x 3 % = $3,972