Land Transfer Tax
What is the Land Transfer Tax?
When you purchase property in Ontario, you are required to pay Land Transfer Tax on closing. The amount of Land Transfer Tax that is payable depends on the purchase price of the property. Typically, the amount is paid to your lawyer, who will remit it to the government on the closing of your deal.
In addition to the provincial Land Transfer Tax in Ontario, if the property you are purchasing is located in Toronto, you will be required to pay an additional municipal land transfer tax.
How much is the Land Transfer Tax?
The Land Transfer Tax in Ontario is calculated on a sliding scale. The following lists the rates of the tax payable based on the purchase price of the property.
amounts up to and including $55,000: 0.5%
amounts exceeding $55,000, up to and including $250,000: 1.0%
amounts exceeding $250,000, up to and including $400,000: 1.5%
amounts exceeding $400,000: 2.0%
amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%.
If you are purchasing property in Toronto, the land transfer tax rates are currently the same as the provincial rates.
Are there any rebates available?
Yes, if you are a first time home buyer, you may be eligible for a Land Transfer Tax rebate. Currently, first time home buyers are eligible to receive up to a $4,000 rebate of the Ontario Land Transfer Tax, and up to $4,475 on the Municipal Land Transfer Tax if the property is located in Toronto.
For more information on this or anything discussed see Ontario Ministry of Finance - LTT or City of Toronto - MLTT
Use the calculator below for an estimate of the Land Transfer Tax that may be payable on your purchase: