How Ontario land transfer tax works
Ontario land transfer tax is a closing cost charged when land, or an interest in land, changes hands. The buyer normally pays it when the transfer is registered.
The tax is marginal, not flat. Each slice of the property’s value is taxed at the rate for that bracket. A $750,000 home is not taxed at 2% on the entire price: the first $55,000 is taxed at 0.5%, the next $195,000 at 1%, the next $150,000 at 1.5%, and only the portion above $400,000 at 2%.
Ontario calculates tax on the value of the consideration. In an ordinary purchase, that is usually the purchase price. It can also include liabilities assumed, benefits conferred, soft costs and upgrades; in some transactions, fair market value is used. HST paid on the purchase price itself is not included.1
Ontario land transfer tax rates for residential property
| Portion of value | Marginal rate |
|---|---|
| First $55,000 | 0.50% |
| Over $55,000 to $250,000 | 1.00% |
| Over $250,000 to $400,000 | 1.50% |
| Over $400,000 to $2,000,000 | 2.00% |
| Over $2,000,000 (one or two single-family residences) | 2.50% |
For property that does not contain one or two single-family residences, the provincial rate remains 2% on the portion above $400,000. Cottages and cabins can count as single-family residences even if used seasonally; qualifying farm-class residences are treated differently.1
Why Toronto buyers pay a second land transfer tax
Property inside the City of Toronto is subject to the Municipal Land Transfer Tax (MLTT) in addition to Ontario’s provincial tax.
Toronto has charged MLTT since 2008. For most homes under $3 million, the municipal brackets mirror the provincial brackets. That is why the pre-rebate tax is often described as “double,” although Toronto now has much steeper marginal rates for high-value residential property.2
Toronto is not the GTA
The municipal tax applies only within City of Toronto boundaries. Purchases in Mississauga, Brampton, Vaughan, Markham, Richmond Hill, Oakville, Burlington, Hamilton and other Ontario municipalities do not pay Toronto MLTT.
Toronto MLTT rates effective April 1, 2026
| Portion of value — 1 or 2 residences | Marginal rate |
|---|---|
| First $55,000 | 0.50% |
| Over $55,000 to $250,000 | 1.00% |
| Over $250,000 to $400,000 | 1.50% |
| Over $400,000 to $2,000,000 | 2.00% |
| Over $2,000,000 to $3,000,000 | 2.50% |
| Over $3,000,000 to $4,000,000 | 4.40% |
| Over $4,000,000 to $5,000,000 | 5.45% |
| Over $5,000,000 to $10,000,000 | 6.50% |
| Over $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
Toronto also charges an MLTT administration fee of $102.56 plus HST. Foreign buyers may face a separate 10% Municipal Non-Resident Speculation Tax on certain residential property, on top of MLTT and Ontario’s separate NRST. Those speculation taxes are not included in this calculator.2
Ontario first-time home buyer land transfer tax rebate
Eligible purchasers can reduce provincial land transfer tax by up to $4,000. In Toronto, a separate municipal rebate of up to $4,475 may also apply.
A qualifying first-time buyer can pay no Ontario LTT on an eligible home valued up to $368,000. Above that price, the provincial refund is capped at $4,000. Toronto’s rebate can eliminate MLTT on an eligible home up to $400,000 and is capped at $4,475.34
Ontario eligibility checklist
- You are at least 18 years old.
- You will occupy the home as your principal residence within nine months of transfer.
- You have never owned an eligible home—or an interest in one—anywhere in the world, however acquired.
- If you have a spouse, they did not own an eligible home while they were your spouse.
- You are a Canadian citizen or permanent resident at closing, or become one within 18 months and otherwise qualify.
This test is stricter than some federal “first-time buyer” definitions. You cannot re-qualify for Ontario’s LTT refund simply because several years have passed since you owned a home.3
What homes are eligible?
Eligible homes include detached and semi-detached houses, townhouses, condominium units, duplexes, triplexes, fourplexes, qualifying mobile and manufactured homes, certain housing co-op shares, and some partial ownership interests acquired for the right to occupy a housing unit.
What if only one buyer qualifies?
Ontario generally reduces the refund in proportion to the ownership interest acquired by qualifying purchasers. A qualifying child buying 50/50 with a non-qualifying parent may be limited to 50% of the maximum refund. Spousal rules can allow a different result where the spouse owned a home before the marriage but not while they were spouses. Use the ownership-share control only as a planning estimate; have your lawyer confirm the actual entitlement.
How and when to claim
The refund can often be claimed at registration so it offsets tax at closing. If it is not claimed then, Ontario allows a refund application within 18 months after registration or the unregistered disposition. Toronto also requires a post-registration rebate application within 18 months and may charge a processing fee.34
Who may be exempt from Ontario land transfer tax?
Most ordinary purchases are taxable. Exemptions exist for narrowly defined transactions, and the details matter.
Potential exemptions include certain transfers between spouses or former spouses, qualifying family farm transfers, qualifying transfers to family business corporations, certain life-lease interests involving non-profits or charities, and leases whose unexpired term cannot exceed 50 years including renewals.
A transfer for no cash is not automatically tax-free. If a recipient assumes a mortgage or other liability, that amount can be consideration. Likewise, adding a family member to title, moving real estate into a corporation, handling a separation transfer, or transferring beneficial ownership may create tax even when no conventional sale occurs.
Do not rely on the calculator for an exemption
Exemption rules are fact-specific and documentation-sensitive. The calculator assumes a taxable purchase. Ask an Ontario real estate lawyer to review any gift, estate, trust, spouse, farm, corporate or lease transaction before registration.
First-time buyer refund vs. exemption
A first-time buyer refund is not a blanket exemption. The tax is calculated first, then the available refund offsets it. On higher-priced homes, tax remains payable after the maximum refund.
Ontario land transfer tax examples
These examples use current rates for a property containing one or two single-family residences and assume every purchaser qualifies where a refund is shown.
$400,000 home
- Ontario tax
- $4,475
- Ontario after refund
- $475
- Toronto tax
- $4,475
- Toronto after rebate
- $0
$750,000 home
- Ontario tax
- $11,475
- Toronto tax
- $11,475
- Total outside Toronto
- $11,475
- Total in Toronto
- $22,950
$1,500,000 home
- Ontario tax
- $26,475
- Toronto tax
- $26,475
- Toronto total
- $52,950
- With both refunds
- $44,475
Worked calculation: $750,000 Ontario home
- 0.5% × $55,000 = $275
- 1% × $195,000 = $1,950
- 1.5% × $150,000 = $2,250
- 2% × $350,000 = $7,000
- Total Ontario LTT = $11,475
If the home is in Toronto, the same $11,475 municipal tax applies at this price, producing $22,950 before refunds. A fully qualifying first-time buyer could reduce that combined amount by up to $8,475, to $14,475.
Other closing costs to budget for
Land transfer tax is only one closing cost. Your budget may also need to cover legal fees and disbursements, title insurance, a home inspection, appraisal, property tax and utility adjustments, mortgage insurance where applicable, new-build HST treatment, moving costs, and the Toronto MLTT administration fee.
Turn the tax estimate into a closing plan
Compare financing options and get transaction-specific legal guidance before you waive conditions or finalize your closing budget.
Ontario land transfer tax questions
Quick answers to the questions buyers most often ask before closing.
How much is land transfer tax in Ontario?
Ontario uses marginal rates: 0.5% on the first $55,000; 1% from $55,000 to $250,000; 1.5% from $250,000 to $400,000; 2% above $400,000; and 2.5% above $2 million for land containing one or two single-family residences.
Do I pay land transfer tax in Toronto and Ontario?
Yes. A taxable purchase within the City of Toronto is generally subject to both Ontario LTT and Toronto MLTT. Properties elsewhere in Ontario do not pay Toronto MLTT.
When is land transfer tax paid?
It is generally due when the transfer is registered at closing. Your real estate lawyer usually calculates the amount, collects it with other closing funds, and remits it through the land registration process.
Can land transfer tax be added to my mortgage?
It is normally a closing cost paid from your available funds, not rolled into the registered mortgage. Discuss cash-to-close requirements with your lender or broker before closing.
What is the Ontario first-time buyer rebate?
Eligible buyers can receive a refund of Ontario LTT up to $4,000. Toronto offers a separate rebate up to $4,475 for qualifying purchases in the city.
Can I be a first-time buyer if I owned a home years ago?
Not for this Ontario refund. Prior ownership of a home or interest in a home anywhere in the world disqualifies you, regardless of how long ago it was or how you acquired it.
Does my spouse’s previous home ownership affect my refund?
Yes. If your spouse owned a home while they were your spouse, neither spouse can claim the Ontario refund. If they owned before becoming your spouse but not during the spousal relationship, different rules may permit a claim. Get legal advice for your facts.
Does the rebate apply to resale homes and condos?
Yes. The Ontario refund can apply to eligible new or resale homes, including qualifying condominium units. Toronto’s rebate also applies to eligible new and resale residential property.
Is Toronto’s municipal tax exactly the same as Ontario’s?
At values up to $3 million for one- or two-residence property, the marginal brackets align. Above $3 million, Toronto’s rates are substantially higher under the schedule effective April 1, 2026.
Are foreign buyer taxes included?
No. Ontario’s 25% Non-Resident Speculation Tax and Toronto’s separate 10% Municipal Non-Resident Speculation Tax may apply to certain foreign buyers. These require transaction-specific advice.
Is tax based on purchase price or assessed value?
It is based on the legal value of consideration. In a normal arm’s-length purchase that is commonly the purchase price, but assumed liabilities, benefits, soft costs, upgrades or fair market value rules can change the amount.
Can a gift of property avoid land transfer tax?
Not automatically. Even with no cash payment, an assumed mortgage or other liability can be taxable consideration. Gifts, trusts and family title changes should be reviewed by a lawyer.
Official rates and guidance
Calculator logic and guide content are based on Ontario and City of Toronto source material available October 4, 2026.
- Ontario Ministry of Finance — Calculating Land Transfer Tax. Provincial brackets, value of consideration and HST treatment.
- City of Toronto — MLTT & MNRST Rates and Fees. Toronto brackets effective April 1, 2026, MNRST and fees.
- Ontario Ministry of Finance — Land Transfer Tax Refunds for First-Time Homebuyers. Eligibility, maximum refund and process.
- City of Toronto — MLTT Rebate Opportunities. Municipal eligibility, rebate and timing.