Ontario Land Transfer Tax in 2026: Rates, Examples and Rebates

Land transfer tax is the closing cost Ontario buyers most often underestimate — on a $700,000 home it exceeds $10,000, due in full on closing day. Rates are marginal (like income tax brackets): 0.5% on the first $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000, and 2.5% above.

Toronto buyers pay a second, municipal land transfer tax on top — but first-time buyers can recover up to $4,000 provincially and $4,475 municipally in Toronto. Figures below reflect 2026 rules.

Worked examples (provincial tax)

Toronto purchases add municipal LTT at the same marginal rates — roughly doubling the tax before rebates.

First-time buyer rebates

• Provincial rebate up to $4,000: covers the full tax on the first $368,000; a flat $4,000 credit above that. You must be 18+, occupy as a principal residence within 9 months, and never have owned an eligible home anywhere in the world.
• Toronto municipal rebate up to $4,475: stackable — combined Toronto savings up to $8,475.
• Timing: your lawyer claims it at registration, so the saving is immediate at closing; late claims are possible within 18 months.
• One-time: Ontario notes you cannot re-qualify for this refund later, unlike some federal programs with look-back windows.

Budget the full close, not just the tax

Total Ontario closing costs typically run 1.5–4% of the purchase price: LTT, legal fees ($1,500–$2,500), title insurance ($200–$400), home inspection ($400–$600) and moving costs. On a $700,000 purchase, budget $12,000–$25,000 beyond the down payment — the buyers who get hurt are the ones who saved exactly the down payment and nothing else.