Land Transfer Tax
Current Land Transfer Tax in ONTARIO & Toronto Explained
When purchasing real estate in Ontario, it’s important to budget not only for your down payment but also for closing costs — including Land Transfer Tax.
This guide explains:
• Who pays it
• How it’s calculated
• Current Ontario and Toronto rates
• First-time home buyer rebates
• The Non-Resident Speculation Tax
You pay Municipal Land Transfer Tax if you buy property within these boundaries. (Map courtesy of Rate Hub)
Who Pays Land Transfer Tax & When?
The purchaser pays Ontario Land Transfer Tax on the closing date. Sellers do not pay Land Transfer Tax.
For resale properties, closing typically occurs days or weeks after the offer is accepted.
For pre-construction properties, closing may occur several years later once construction is complete.
How Much Is Land Transfer Tax in Ontario?
The amount of Ontario Land Transfer Tax owed will depend on the purchase price of the property. As mentioned before, any properties purchased in Toronto are subject to both municipal and provincial Land Transfer Tax.
How is Land Transfer Tax Calculated?
Ontario Land Transfer Tax is calculated on a sliding scale based on the purchase price.
Rather than calculating it manually, use a Land Transfer Tax Calculator for accuracy.
Current Ontario Land Transfer Tax Rates
-
Up to $55,000: 0.5%
-
$55,000 to $250,000: 1.0%
-
$250,000 to $400,000: 1.5%
-
$400,000 to $2,000,000: 2.0%
-
Over $2,000,000: 2.5%
Current Toronto Land Transfer Tax Rates
Toronto uses the same rate structure municipally:
-
Up to $55,000: 0.5%
-
$55,000 to $250,000: 1.0%
-
$250,000 to $400,000: 1.5%
-
$400,000 to $2,000,000: 2.0%
-
Over $2,000,000: 2.5%
CALCULATE: Use our Ontario and Toronto Land Transfer Tax Calculator
Who is Eligible for the Ontario Land Transfer Tax Rebate?
Eligible first-time home buyers may receive:
• Up to $4,000 provincial rebate (Ontario)
• Up to $4,475 municipal rebate (Toronto)
Maximum combined rebate in Toronto: $8,475
Outside Toronto, buyers receive only the provincial rebate.
Eligibility Requirements
To qualify, the buyer must:
• Be at least 18 years old
• Be a Canadian citizen or permanent resident
• Intend to occupy the home as a principal residence within 9 months
• Never have owned a home anywhere in the world
If you have a spouse who previously owned a home while married to you, you are not eligible for the rebate.
How To Get the Land Transfer Tax Rebate?
Most buyers claim the rebate at closing through their lawyer.
If not claimed at closing, purchasers must apply within 18 months of registration.
Land Transfer Tax Exemptions
There’s an exception to every rule and when it comes to family, Ontario may waive your land transfer fee. Instances where you may be exempt from Land Transfer Tax are:
- Land transfers between spouses
- Land transfers from a person to the family business
- Land transfers of farming property between family members
Non-Resident Speculation Tax
It’s worth mentioning here that any non-residents who purchase real estate in Ontario are subject to the 25% Non-Resident Speculation Tax (aka the Foreign Buyers Tax) in addition to the general Land Transfer Tax Ontario guidelines.
Ask a Lender or Accountant for more details.
