How Ontario land transfer tax is calculated
Ontario land transfer tax (LTT) applies to virtually every transfer of land in the province and is payable on closing. It is calculated on a sliding scale: 0.5% on the first $55,000 of the price, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2% from $400,000 to $2 million, and 2.5% above $2 million for homes with one or two single-family residences.
On an $800,000 home, provincial LTT alone comes to $12,475.
Toronto's municipal land transfer tax
Buy within the City of Toronto and you pay a second, municipal land transfer tax on top — calculated on nearly identical brackets, effectively doubling the bill. That same $800,000 Toronto home attracts roughly $24,950 in combined land transfer taxes. Toronto also applies escalating luxury-tier rates on homes above $3 million.
The 905 regions — Mississauga, Vaughan, Markham, Brampton and the rest — charge no municipal LTT, a fact that materially affects buy-side budgeting across the GTA.
First-time buyer rebates
Qualifying first-time buyers receive a rebate of up to $4,000 against provincial LTT and up to $4,475 against Toronto's municipal LTT — up to $8,475 combined. To qualify you must be at least 18, never have owned a home anywhere in the world, and if you have a spouse, your spouse must not have owned a home while your spouse.
The rebate is claimed automatically on closing by your lawyer through the electronic registration system — one of many line items we handle on every purchase.
Non-resident speculation tax
Foreign nationals purchasing residential property in Ontario face a Non-Resident Speculation Tax of 25% province-wide, subject to exemptions and rebates for those who later become permanent residents. Anyone who is not a citizen or permanent resident should obtain advice before signing an agreement of purchase and sale.
Estimate your tax in seconds
Our Land Transfer Tax Calculator applies the current provincial and Toronto brackets, including first-time buyer rebates, and gives you an instant, itemized estimate — so there are no surprises on your statement of adjustments.
About the Author
Nooruddin Waliani — Principal Lawyer & Founder
Nooruddin Waliani is the founder of Waliani Law, practising civil litigation, real estate, private lending, criminal defence, family law and estates across Ontario. Called to the Ontario Bar in 2015.