What is the Ontario land transfer tax?#
Ontario charges a tax every time land changes hands. The buyer pays it on closing, on a sliding scale set by the province, and it applies everywhere in Ontario from Windsor to Ottawa.
It is a marginal tax. Each slice of the price is charged at its own rate, so no purchase is taxed at a single percentage. The calculator above shows which slice contributed what.
How much is the Ontario land transfer tax?#
The rate runs 0.5% on the first $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% to $2,000,000 and 2.5% above that. On a $1,000,000 home the tax is $16,475; on a $500,000 home, $6,475.
| Value of consideration | Marginal rate |
|---|---|
| Up to and including $55,000 | 0.50% |
| Over $55k to $250k | 1.0% |
| Over $250k to $400k | 1.50% |
| Over $400k to $2M | 2.0% |
| Over $2M | 2.50% |
The 2.5% band applies only to a house, condo, semi, townhouse or duplex, meaning one or two dwellings on the property. A triplex or anything larger, a commercial or mixed-use property, or a bare lot stops at 2.0% over $400,000 instead.
How much is land transfer tax on a $500,000 or $1,000,000 home in Ontario?#
Outside Toronto you pay the provincial tax alone: $6,475 on $500,000, $11,475 on $750,000 and $16,475 on $1,000,000. A first-time buyer takes $4,000 off each of those, so the same three purchases cost $2,475, $7,475 and $12,475.
The tax climbs faster than the price does, from 1.29% of a $500,000 home to 2.23% of a $5,000,000 one.
| Purchase price | Land transfer tax | First-time buyer pays | Share of price |
|---|---|---|---|
| $500,000 | $6,475 | $2,475 | 1.29% |
| $750,000 | $11,475 | $7,475 | 1.53% |
| $1,000,000 | $16,475 | $12,475 | 1.65% |
| $1,250,000 | $21,475 | $17,475 | 1.72% |
| $1,500,000 | $26,475 | $22,475 | 1.76% |
| $1,750,000 | $31,475 | $27,475 | 1.80% |
| $2,000,000 | $36,475 | $32,475 | 1.82% |
| $2,250,000 | $42,725 | $38,725 | 1.90% |
| $2,500,000 | $48,975 | $44,975 | 1.96% |
| $2,750,000 | $55,225 | $51,225 | 2.01% |
| $3,000,000 | $61,475 | $57,475 | 2.05% |
| $3,250,000 | $67,725 | $63,725 | 2.08% |
| $3,500,000 | $73,975 | $69,975 | 2.11% |
| $3,750,000 | $80,225 | $76,225 | 2.14% |
| $4,000,000 | $86,475 | $82,475 | 2.16% |
| $4,250,000 | $92,725 | $88,725 | 2.18% |
| $4,500,000 | $98,975 | $94,975 | 2.20% |
| $4,750,000 | $105,225 | $101,225 | 2.22% |
| $5,000,000 | $111,475 | $107,475 | 2.23% |
Which Ontario municipalities charge their own land transfer tax?#
Only Toronto. Buy inside the city and you pay the provincial tax plus the City's Municipal Land Transfer Tax, which roughly doubles the bill. Every other municipality in the province, including Mississauga, Ottawa, Hamilton and the rest of the GTA, charges nothing of its own.
If you are buying in Toronto, the Toronto land transfer tax calculator covers the municipal rates, the extra city rebate, and the fees the City adds on closing.
Who pays land transfer tax, the buyer or the seller?#
The buyer. It is due on closing, paid through your lawyer when the transfer is registered, and it cannot be added to your mortgage. It comes out of your own funds alongside your down payment.
How much is the first-time buyer refund in Ontario?#
Up to $4,000, which cancels the tax completely on a purchase up to about $368,333. Above that you receive the full $4,000 and pay the remainder.
To qualify you must be at least 18, occupy the home as your principal residence within nine months, be a Canadian citizen or permanent resident, and never have owned a home anywhere in the world. If you have a spouse, they must not have owned a home while you were spouses.
Your lawyer normally claims it at registration, so the money never leaves your account. If it is missed you have 18 months to claim it back from the Ministry of Finance.
If a co-purchaser does not qualify, the refund is reduced to the share of the property held by those who do. A parent added to title at the bank's insistence is the common case, and it halves the refund on a 50/50 split. Tick "first-time home buyer" above and the share field appears. Toronto's rebate is reduced the same way.
Who is exempt from land transfer tax in Ontario?#
Very few people. The main exemptions are transfers between spouses where no money changes hands, transfers to a family farm corporation, and certain transfers between a person and their own corporation. A gifted property with no mortgage assumed generally carries no tax, because tax is charged on what is actually given rather than on what the property is worth.
The first-time buyer refund is a refund, not an exemption. You are still assessed the tax; the refund is claimed against it.
Is the tax charged on the purchase price?#
Almost always, but not exactly. It is charged on the value of the consideration: the purchase price plus any liabilities you assume, benefits you confer, and the cost of upgrades on a new build. HST is excluded, so land transfer tax is never charged on the HST portion of a new home's price.
For a resale home with no unusual terms, the value of the consideration and the purchase price are the same number.
What do foreign buyers pay?#
First, check whether you can buy at all. Until January 1, 2027, federal law bars people who are not Canadian citizens or permanent residents from buying a home of up to three units in a census metropolitan area or census agglomeration, which includes Toronto. There are exceptions, such as some work-permit holders, students, protected persons and spouses of Canadians.
Buyers who can buy pay a 25% Non-Resident Speculation Tax on top of the land transfer tax, on a home of one to six units anywhere in Ontario. It also applies to foreign corporations and some trusts. Ontario nominees, protected persons and some spouses can be exempt, and the tax can be refunded if you become a permanent resident within four years. On a $1,000,000 purchase that is a further $250,000. In Toronto another 10% of the price applies, so the two taxes come to $350,000.
Tick "not a Canadian citizen or permanent resident" above and the calculator includes it.
What else do I pay on closing?#
Land transfer tax is the largest single cost, and it is not the only one. Head to the closing costs calculator for a more comprehensive overview of all closing costs, including the lawyer's fee, title insurance, the property tax adjustment and the sales tax on mortgage insurance.