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Buyers Guide

Land
Transfer Tax

One of the biggest upfront costs of buying a home in Ontario, and in Toronto, buyers pay both provincial and municipal versions. Learn how Ontario and Toronto land transfer tax is calculated, current rates, first-time buyer rebates, and how much you'll pay on closing.

⚠ Toronto buyers pay both provincial & municipal LTT  ·  Paid on closing using your own funds, separate from your mortgage proceeds  ·  First-time buyers can save up to $8,475 in rebates
01
The Basics

What Is Land Transfer Tax?

Land Transfer Tax (LTT) is a one-time tax generally payable when an interest in Ontario property is transferred, paid on closing. It is calculated as a percentage of the purchase price on a sliding scale: the more expensive the property, the higher the rate applied to each bracket.

LTT is normally paid through your lawyer as part of the funds required on closing, using your own funds rather than your mortgage proceeds, and should be budgeted separately from your down payment and other closing costs. This makes it one of the most important costs to account for when budgeting for a purchase.

Toronto buyers pay two land transfer taxes. Purchases within the City of Toronto are subject to both Ontario LTT and Toronto's municipal LTT. For most residential purchases below $3 million, the two calculations are similar. Toronto applies higher municipal rates to portions of qualifying high-value residential purchases above $3 million.
02
Ontario Rates

Ontario LTT Rates for Residential Properties with One or Two Homes

Ontario's LTT is calculated on a sliding scale. Each bracket applies only to the portion of the purchase price that falls within that range, not the full price.

Purchase Price Bracket Tax Rate
$0 to $55,000 0.5%
$55,001 to $250,000 1.0%
$250,001 to $400,000 1.5%
$400,001 to $2,000,000 2.0%
Over $2,000,000 2.5%

These brackets apply to properties containing one or two single-family residences. Different treatment can apply to commercial, multi-residential and other property types, so confirm the calculation with your real estate lawyer.

Example: $1,200,000 purchase in Richmond Hill (Ontario only)
$0 to $55,000 @ 0.5% $275.00
$55,001 to $250,000 @ 1.0% $1,950.00
$250,001 to $400,000 @ 1.5% $2,250.00
$400,001 to $1,200,000 @ 2.0% $16,000.00
Total Ontario LTT $20,475.00

You can estimate your own bill quickly with our Toronto mortgage calculators, which include a land transfer tax panel for both the Ontario and Toronto portions.

03
Toronto Premium

Toronto's Municipal Land Transfer Tax

Toronto is the only municipality in Ontario with its own land transfer tax. For homes under $3 million, the Toronto LTT mirrors the provincial rate structure, meaning buyers within city limits pay a similar amount again on top of the Ontario LTT. For homes priced over $3 million, Toronto applies additional, higher municipal rates on the upper portion of the price.

On a $1,200,000 home purchased in Toronto, here's what that looks like:

Ontario LTT
$20,475
Provincial tax, applies to all buyers in Ontario
Toronto Municipal LTT
$20,475
Additional city tax, Toronto buyers only
Total LTT due on closing (Toronto purchase) $40,950
Buying just outside Toronto? Municipalities like Mississauga, Vaughan, Richmond Hill, Markham, and Brampton only charge the provincial Ontario LTT, with no municipal layer. This is a meaningful difference for buyers who have flexibility in where they purchase.
04
Good News

First-Time Buyer Rebates

If this is your first home purchase, both Ontario and Toronto offer LTT rebates to help offset closing costs. If you qualify, your real estate lawyer can usually claim the Ontario refund and Toronto rebate during registration so they reduce the amount due on closing. If they are not claimed at registration, you may need to pay the tax first and apply afterward. Ontario and Toronto generally require later applications within 18 months, and Toronto charges an administration fee for a post-registration rebate request.

Ontario Rebate
$4,000
Maximum provincial rebate for first-time buyers anywhere in Ontario
Toronto Rebate
$4,475
Additional municipal rebate for first-time buyers purchasing in the City of Toronto
Maximum combined rebate (Toronto purchase) $8,475
A proportional rebate may apply when only some purchasers qualify, for example when a first-time buyer purchases with a non-qualifying co-owner. A purchase price above the amount fully covered by the rebate does not reduce the maximum rebate; it simply leaves additional tax payable.
05
Eligibility

Who Qualifies for the Rebate?

To qualify for either the Ontario or Toronto first-time home buyer LTT rebate, you must meet all of the following criteria:

✓
Canadian citizen or permanent resident
You must be a Canadian citizen or permanent resident to receive the rebate. An otherwise eligible purchaser who obtains citizenship or permanent-resident status within 18 months after the transfer may still apply and qualify.
✓
At least 18 years old
You must be of legal age at the time the transfer is registered.
✓
Never previously owned a home, anywhere in the world
You must not have owned a residential property anywhere in the world at any time before this purchase.
✓
Spouse has not owned a home during your relationship
If you have a spouse, they must not have owned a home anywhere in the world while they were your spouse. A spouse's ownership before the relationship does not automatically disqualify you, although the rebate calculation can become more complex.
✓
Occupy the property within 9 months
The home must become your principal residence within 9 months of closing.
Buying with a co-purchaser who has owned before? You may still qualify for a partial rebate based on your ownership share. Your real estate lawyer will calculate the eligible portion at closing.
06
FAQ

Frequently Asked Questions

What is land transfer tax in Ontario?
Land transfer tax (LTT) is a one-time tax you pay on closing when you buy property in Ontario. It is calculated as a percentage of the purchase price on a sliding scale, must be paid in full on closing day, and cannot be added to your mortgage.
Do Toronto homebuyers pay land transfer tax twice?
Effectively, yes. Toronto is the only municipality in Ontario with its own municipal land transfer tax, so buyers within city limits pay both the provincial Ontario LTT and the Toronto municipal LTT. Buyers elsewhere in Ontario pay only the provincial tax.
How much is land transfer tax in Toronto?
Toronto buyers pay both the provincial and municipal LTT, which mirror each other for homes under $3 million. On a $1,200,000 home, that is $20,475 in Ontario LTT plus $20,475 in Toronto municipal LTT, for a total of $40,950 due in cash on closing, before any first-time buyer rebate. You can estimate your own figure with our Toronto mortgage calculators.
Can land transfer tax be added to my mortgage?
Land transfer tax is not part of your mortgage. It is normally paid through your lawyer as part of the funds required on closing, so budget for it separately from your down payment. See our guide to buying in Toronto for the full closing-cost picture.
How much is the first-time home buyer land transfer tax rebate?
First-time buyers can receive up to $4,000 back on the Ontario LTT, and buyers purchasing in the City of Toronto can receive an additional $4,475 on the municipal LTT, for a maximum combined rebate of $8,475. Eligible rebates are commonly claimed through the buyer's lawyer at registration and applied against the tax owing. If they are not claimed then, the buyer may apply afterward within the applicable deadline.
Who qualifies for the first-time buyer land transfer tax rebate?
To qualify you must be a Canadian citizen or permanent resident, at least 18 years old, have never owned a home anywhere in the world, and not have a spouse who owned a home while you were together. You must also move in within 9 months of closing. Partial rebates may apply if a co-purchaser has owned before. Confirm your eligibility with your real estate lawyer.
Do you pay land transfer tax on a newly built home?
Yes. LTT applies to a newly built home the same way it applies to a resale home, based on the purchase price, so new construction does not eliminate it. It is separate from HST, which can apply to new builds and has its own rebates. A first-time buyer may still qualify for the LTT rebate. Confirm how LTT, HST, and any rebates apply to your specific purchase with your builder and lawyer.
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