Land Transfer Tax in Ontario & Toronto – Rates, Rebates & How to Calculate | Own In Toronto
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Buyers Guide

Land
Transfer Tax

One of the biggest upfront costs of buying a home in Ontario — and in Toronto, you pay it twice. Here's how it's calculated, and how to minimize it.

⚠ Toronto buyers pay both provincial & municipal LTT  ·  Cannot be added to your mortgage  ·  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 that all homebuyers must pay upon closing when purchasing property in Ontario. 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.

Unlike many other closing costs, LTT cannot be added to your mortgage. It must be paid in full on closing day, in cash. This makes it one of the most important costs to account for when budgeting for a purchase.

Toronto buyers pay double. If you're purchasing within the City of Toronto, you are subject to both the provincial Ontario LTT and an additional municipal Toronto LTT — effectively doubling your land transfer tax obligation compared to buyers anywhere else in Ontario.
02
Ontario Rates

Provincial LTT Rate Breakdown

Ontario's land transfer tax 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 – $55,000 0.5%
$55,001 – $250,000 1.0%
$250,001 – $400,000 1.5%
$400,001 – $2,000,000 2.0%
Over $2,000,000 2.5%
Example — $1,200,000 purchase in Richmond Hill (Ontario only)
$0 – $55,000 @ 0.5% $275.00
$55,001 – $250,000 @ 1.0% $1,950.00
$250,001 – $400,000 @ 1.5% $2,250.00
$400,001 – $1,200,000 @ 2.0% $16,000.00
Total Ontario LTT $20,475.00
03
Toronto Premium

Toronto's Municipal Land Transfer Tax

Toronto is the only municipality in Ontario with its own land transfer tax. The Toronto LTT mirrors the provincial rates exactly — meaning buyers within city limits pay the same amount again on top of the Ontario LTT.

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 — 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 land transfer tax rebates to help offset closing costs. These are applied at closing — you don't need to apply separately or wait for a refund.

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
Partial rebates apply when only part of the purchase qualifies — for example, if one buyer on the title is a first-time buyer and the other is not, or if the purchase price exceeds the rebate threshold.
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 at the time of closing.
✓
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 previously owned a home while your spouse
If you are purchasing with a spouse, they must not have owned a home while you were married or in a common-law relationship.
✓
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.
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