What Is the Ontario Land Transfer Tax?

The Ontario Land Transfer Tax (LTT) is a provincial tax levied on every real estate purchase in Ontario. Buyers — not sellers — pay this tax when title of the property is transferred. Whether you are buying a single-family home, condominium, townhouse, or commercial property, you will owe Ontario LTT at closing.

Ontario Land Transfer Tax Rates (2024)

Ontario LTT is calculated on the purchase price of the property using a tiered marginal tax rate system:

  • 0.5% on the first $55,000 of the purchase price
  • 1.0% on the portion from $55,001 to $250,000
  • 1.5% on the portion from $250,001 to $400,000
  • 2.0% on the portion from $400,001 to $2,000,000
  • 2.5% on any amount over $2,000,000 (for residential properties)

Toronto Land Transfer Tax

If you are purchasing in the City of Toronto, you will pay a second municipal land transfer tax on top of the provincial Ontario LTT. Toronto LTT uses the same rate structure, meaning Toronto home buyers pay double the land transfer tax of buyers elsewhere in Ontario.

First-Time Home Buyer Land Transfer Tax Rebate in Ontario

First-time home buyers in Ontario may qualify for a rebate of up to $4,000 on the provincial LTT. To qualify, you must:

  • Be a Canadian citizen or permanent resident
  • Be at least 18 years of age
  • Occupy the home as your principal residence within 9 months of purchase
  • Never have owned a home anywhere in the world

Toronto first-time buyers can also apply for a separate Toronto LTT rebate of up to $4,475.

How to Calculate Your Ontario Land Transfer Tax

Use the formula below to manually estimate your LTT, or contact Saif Abdulah for a free, accurate calculation.

Example: $700,000 home purchase in Toronto

Ontario LTT:

  • 0.5% × $55,000 = $275
  • 1.0% × ($250,000 – $55,000) = $1,950
  • 1.5% × ($400,000 – $250,000) = $2,250
  • 2.0% × ($700,000 – $400,000) = $6,000
  • Ontario LTT Total = $10,475

Toronto LTT (same calculation) = $10,475

Total LTT for a Toronto buyer = $20,950 (before any first-time buyer rebate)

Land Transfer Tax in Ontario vs. Toronto: Side-by-Side Comparison

Purchase PriceOntario LTT OnlyOntario + Toronto LTT
$500,000$6,475$12,950
$700,000$10,475$20,950
$1,000,000$16,475$32,950

How to Pay Land Transfer Tax in Ontario

Land transfer tax is collected by your real estate lawyer at the time of closing. You do not pay it directly to the government — it is handled automatically through the closing process. Make sure your mortgage financing accounts for closing costs, including LTT.

Is Land Transfer Tax Included in My Mortgage?

No. Land transfer tax cannot be added to your mortgage principal. It must be paid in cash at closing. For most buyers, this is one of the largest closing costs, which is why it is critical to plan ahead. A licensed mortgage agent like Saif Abdulah will always factor LTT into your total budget.

Frequently Asked Questions About Ontario Land Transfer Tax

Do I pay land transfer tax on a new construction home?

Yes, land transfer tax applies to new construction homes as well as resale properties in Ontario.

Is there a land transfer tax rebate for new construction in Ontario?

First-time buyers purchasing a newly built home may qualify for the Ontario first-time buyer rebate of up to $4,000. Toronto buyers may also qualify for the Toronto first-time buyer rebate of up to $4,475.

Who pays land transfer tax in Ontario — buyer or seller?

The buyer is responsible for paying land transfer tax in Ontario. Sellers do not pay LTT.

What is the land transfer tax on a $1,000,000 home in Ontario?

On a $1,000,000 purchase in Ontario, the provincial LTT would be $16,475. In Toronto, you would owe an additional $16,475 in Toronto LTT for a total of $32,950 (before rebates).

How do I get help budgeting for land transfer tax?

Contact Saif Abdulah, a Licensed Mortgage Agent Level 2 with 8Twelve Mortgage. Saif helps Ontario home buyers understand their full closing costs, including LTT, and structures pre-approvals to account for every expense. Book a free consultation today.

Ready to Buy a Home in Ontario? Get Pre-Approved Today

Understanding your land transfer tax is just one piece of the home-buying puzzle. Saif Abdulah is a Licensed Mortgage Agent Level 2 operating under 8Twelve Mortgage, serving buyers across Toronto, Mississauga, Vaughan, Markham, Brampton, and all of Ontario.

Services include:

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