Ontario Land Transfer Tax Calculator
Calculate your Ontario land transfer tax and Toronto municipal land transfer tax. See first-time buyer rebates and your total closing costs.
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Toronto has an additional municipal land transfer tax
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Complete Guide to Ontario Land Transfer Tax
Land transfer tax is one of the largest closing costs when buying a home in Ontario. Understanding how it's calculated, what rebates you may qualify for, and how to budget for this expense is essential for any home buyer. This guide covers everything you need to know about Ontario's provincial land transfer tax and Toronto's municipal land transfer tax.
What is Land Transfer Tax?
Land transfer tax (LTT) is a provincial tax charged on the transfer of property ownership in Ontario. It's administered by the Ontario Ministry of Finance and must be paid on the closing date of your real estate transaction. The tax is calculated based on the purchase price (or "value of consideration") of the property.
Unlike some closing costs that can be rolled into your mortgage, land transfer tax must be paid in full on closing day. This makes it a significant upfront expense that buyers need to budget for separately from their down payment.
According to the Ontario Real Estate Association (OREA), land transfer tax is one of the top concerns for first-time home buyers, as it can add tens of thousands of dollars to closing costs.
Ontario Land Transfer Tax Rates (2024-2025)
Ontario uses a marginal tax rate system, similar to income tax. Different portions of your purchase price are taxed at different rates. The current rates, which have been in effect since 2017, are:
| Purchase Price Range | Marginal Rate | Tax on This Portion |
|---|---|---|
| $0 - $55,000 | 0.5% | Up to $275 |
| $55,001 - $250,000 | 1.0% | Up to $1,950 |
| $250,001 - $400,000 | 1.5% | Up to $2,250 |
| $400,001 - $2,000,000 | 2.0% | Up to $32,000 |
| Over $2,000,000 | 2.5% | No cap |
Example Calculation: $700,000 Home
Here's how the provincial LTT is calculated on a $700,000 home purchase:
| Portion | Amount | Rate | Tax |
|---|---|---|---|
| First $55,000 | $55,000 | 0.5% | $275 |
| $55,001 - $250,000 | $195,000 | 1.0% | $1,950 |
| $250,001 - $400,000 | $150,000 | 1.5% | $2,250 |
| $400,001 - $700,000 | $300,000 | 2.0% | $6,000 |
| Total Provincial LTT | $10,475 | ||
Toronto Municipal Land Transfer Tax (MLTT)
If you're buying property within the City of Toronto, you'll pay an additional municipal land transfer tax on top of the provincial tax. Toronto is the only municipality in Ontario that charges this additional tax, which was introduced in 2008 under the City of Toronto Act.
The Toronto MLTT uses the same rate structure as the provincial tax, effectively doubling your land transfer tax if you buy in Toronto:
| Purchase Price Range | Toronto MLTT Rate | Combined Rate (Prov + MLTT) |
|---|---|---|
| $0 - $55,000 | 0.5% | 1.0% |
| $55,001 - $250,000 | 1.0% | 2.0% |
| $250,001 - $400,000 | 1.5% | 3.0% |
| $400,001 - $2,000,000 | 2.0% | 4.0% |
| Over $2,000,000 | 2.5% | 5.0% |
Note: As of January 1, 2024, Toronto introduced additional MLTT rates for high-value residential properties ($3 million+) containing one or two single-family residences. These higher rates range from 3.5% to 7.5% depending on the property value.
Toronto Boundaries
The Toronto MLTT applies to properties within the City of Toronto boundaries, which includes:
- Old Toronto (downtown core)
- North York
- Scarborough
- Etobicoke
- York
- East York
Properties in the 905 area (Mississauga, Brampton, Vaughan, Markham, etc.) are not subject to Toronto MLTT—only the provincial LTT applies.
First-Time Home Buyer Rebates
Both the provincial and Toronto governments offer land transfer tax rebates for first-time home buyers. These rebates can significantly reduce or eliminate your LTT obligation.
Ontario First-Time Home Buyer Rebate
The Ontario government offers a rebate of up to $4,000 for eligible first-time home buyers. This covers the full provincial LTT on homes up to $368,000. For homes over $368,000, you receive the maximum $4,000 rebate and pay the difference.
| Purchase Price | Provincial LTT | FTB Rebate | Net LTT |
|---|---|---|---|
| $300,000 | $2,975 | -$2,975 | $0 |
| $368,000 | $3,995 | -$3,995 | $0 |
| $500,000 | $6,475 | -$4,000 | $2,475 |
| $800,000 | $12,475 | -$4,000 | $8,475 |
Toronto First-Time Home Buyer Rebate
Toronto offers an additional rebate of up to $4,475 for first-time buyers purchasing in the city. This covers the full Toronto MLTT on homes up to $400,000.
Combined, first-time buyers in Toronto can receive up to $8,475 in rebates ($4,000 provincial + $4,475 Toronto).
Eligibility Requirements
To qualify for first-time home buyer rebates, you must meet these requirements:
- Never owned a home: You must never have owned a home or interest in a home anywhere in the world
- Spouse eligibility: If you have a spouse, they must also have never owned a home
- Principal residence: You must occupy the home as your principal residence within 9 months of purchase
- Canadian citizen or permanent resident: You must be 18+ and a Canadian citizen or permanent resident
Non-Resident Speculation Tax (NRST)
In addition to regular land transfer taxes, foreign buyers (non-Canadian citizens or permanent residents) must pay the Non-Resident Speculation Tax (NRST) of 25% on residential property purchases anywhere in Ontario.
The NRST was introduced in 2017 at 15%, increased to 20% in 2022, and raised to 25% in October 2022. Some exemptions and rebates may apply for:
- Protected persons (refugees)
- Foreign nationals who become permanent residents within 4 years
- International students meeting specific criteria
- Foreign nationals working in Ontario
When and How is Land Transfer Tax Paid?
Land transfer tax is paid on closing day when the property ownership is officially transferred. Your real estate lawyer handles the payment as part of the closing process.
Key points about LTT payment:
- Cannot be added to mortgage: Unlike CMHC insurance, LTT must be paid in cash on closing
- Paid through your lawyer: Your lawyer will collect the funds and remit payment to the province
- First-time buyer rebates: Applied automatically if you qualify and complete the required affidavit
- Due on registration: Tax is due when the deed is registered with the Land Registry Office
Land Transfer Tax by Purchase Price
Here's a quick reference showing total LTT at various price points:
| Price | Ontario LTT | Toronto MLTT | Total (Toronto) | FTB Savings |
|---|---|---|---|---|
| $400,000 | $4,475 | $4,475 | $8,950 | $8,475 |
| $500,000 | $6,475 | $6,475 | $12,950 | $8,475 |
| $700,000 | $10,475 | $10,475 | $20,950 | $8,475 |
| $1,000,000 | $16,475 | $16,475 | $32,950 | $8,475 |
| $1,500,000 | $26,475 | $26,475 | $52,950 | $8,475 |
Tips for Managing Land Transfer Tax
💡 Budget Early
Land transfer tax must be paid in cash on closing. Include it in your savings plan alongside your down payment. For a $700,000 home in Toronto, budget approximately $20,950 (or $12,475 as a first-time buyer).
💡 Claim Your Rebates
If you're a first-time buyer, make sure your lawyer files the required affidavit to claim your rebates. This can save you up to $8,475 in Toronto or $4,000 elsewhere in Ontario.
💡 Consider Location Carefully
Buying just outside Toronto (e.g., Mississauga, Vaughan) means you only pay provincial LTT, not the Toronto MLTT. This can save you thousands on the same purchase price.
💡 Work with a Dual-Licensed Professional
A dual-licensed mortgage broker and real estate agent can help you understand all closing costs, including LTT, and factor them into your home buying budget.
Frequently Asked Questions
Can I add land transfer tax to my mortgage?
No, land transfer tax must be paid in cash on closing day. Unlike CMHC insurance premiums, LTT cannot be rolled into your mortgage. You need to have these funds available separately from your down payment.
Do I pay LTT on a new construction home?
Yes, land transfer tax applies to new construction homes. However, you only pay LTT on the land and building value, not on HST. First-time buyer rebates also apply to new construction purchases.
Is there LTT on transfers between family members?
Generally yes, but some exemptions exist. Transfers between spouses (including common-law partners) are exempt. Transfers to children or other family members typically require LTT payment, though some exemptions may apply for family farms.
What if I owned a home outside Canada?
If you've ever owned a home anywhere in the world, you don't qualify for the first-time home buyer rebate. This includes properties owned in other countries, even if you never lived in them.
Do condos pay the same LTT as houses?
Yes, condos are subject to the same land transfer tax rates as houses. The tax is based on the purchase price, regardless of property type. First-time buyer rebates also apply to condo purchases.
How do I apply for the first-time buyer rebate?
Your real estate lawyer will handle the rebate application as part of the closing process. You'll need to sign an affidavit confirming you meet the eligibility requirements. The rebate is applied immediately, reducing your LTT payment on closing.
Sources & References
- • Ontario Ministry of Finance - ontario.ca/finance
- • City of Toronto - toronto.ca (Municipal Land Transfer Tax)
- • Ontario Real Estate Association (OREA) - orea.com
- • Canada Revenue Agency - canada.ca/en/revenue-agency
- • Land Transfer Tax Act, R.S.O. 1990, c. L.6