The transfer tax is calculated in relation to the base amount according to the following rates:
- portion of base amount up to $53,200: 0,5 %
- portion of base amount between $53,200.01 and $266,200: 1,0 %
- portion of base amount between $266,200.01 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 2022 : $527,000 X 1,00 = $527,000
The higher of the following three amounts is taken as the base amount:
- The consideration stipulated: $520,000
- The market value: $527,000
- The sale price: $520,000
Thus, the taxation basis is $527,000. The transfer tax is $6,713 for 2022, calculated as follows:
- $53,200 X 0,5 % = $266
- $213,000 X 1,0 % = $2,130
- $233,800 X 1,5 % = $3,507
- $27,000 x 3 % = $810