Land Transfer Tax in Ontario.

What Land Transfer Tax is

Land Transfer Tax (LTT) is a one-time tax paid by the buyer when a property changes hands. It's calculated as a percentage of the purchase price using a bracketed/marginal rate system, similar to income tax.

If you're buying in Toronto specifically, you pay both provincial LTT (collected by the Ontario government) AND Toronto Municipal LTT (MLTT) on top — essentially double LTT.

Ontario LTT brackets

The provincial rates apply everywhere in Ontario:

• 0.5% on the first $55,000
• 1.0% on $55,001 to $250,000
• 1.5% on $250,001 to $400,000
• 2.0% on $400,001 to $2,000,000
• 2.5% on amounts above $2,000,000 (single family residences only)

Toronto MLTT (additional)

If the property is within the City of Toronto, you also pay the Municipal Land Transfer Tax. The brackets mirror the Ontario LTT brackets, plus additional luxury tiers introduced in 2024 for properties above $3 million.

First-time homebuyer rebate

Both Ontario and Toronto offer rebates for first-time buyers:

• Ontario: up to $4,000 off your provincial LTT
• Toronto: up to $4,475 off your municipal LTT
• You qualify if you're 18+, a Canadian citizen or PR, have never owned a home anywhere in the world (and neither has your spouse during your marriage), and will occupy the home as your primary residence within 9 months

Non-Resident Speculation Tax (NRST)

If you're not a Canadian citizen or permanent resident, an additional 25% tax applies on the purchase price in Ontario. Some exemptions exist (international students, foreign nationals working in Ontario, refugees). Always consult a real estate lawyer before purchasing as a non-resident.

When and how you pay

LTT is paid at closing, through your real estate lawyer. It's not a separate cheque you write to the government — it's part of the closing costs the lawyer collects from you and remits to the relevant tax authorities.

Plan for LTT as part of your "closing costs" along with legal fees, title insurance, and adjustments. For a Toronto purchase, total closing costs typically run 2-4% of the purchase price.

Calculate your LTT

Enter your purchase price and a few details. Results update as you type.

This guide is informational, not financial or legal advice. Tax rates and rebate amounts are subject to change. Always confirm current figures with your real estate lawyer or the Ministry of Finance before closing.