When you're budgeting to buy a home in Ontario, most people think about the down payment, mortgage, and maybe even home inspection fees. But one of the biggest — and often overlooked — expenses is the Land Transfer Tax (LTT).
So what exactly is Land Transfer Tax, how much will you owe, and are there any rebates available? Let’s break it down.
✅ What Is Land Transfer Tax?
Land Transfer Tax is a government tax paid by the buyer when a property changes hands. Whether you’re buying a house, a condo, or even vacant land, this tax applies to almost every real estate transaction in Ontario.
Unlike your down payment or mortgage, this tax is due in full on closing day. Your lawyer will collect and submit it to the government on your behalf to complete the deal.
💰 How Much Is Land Transfer Tax in Ontario?
The amount you owe is based on your property’s purchase price, calculated using a tiered system:
0.5% on the first $55,000
1.0% on the portion from $55,000 to $250,000
1.5% on the portion from $250,000 to $400,000
2.0% on the portion from $400,000 to $2,000,000
2.5% on anything above $2,000,000 (residential properties)
🔍 Example:
On a $700,000 home in Ontario (outside Toronto), you’d pay approximately $10,475 in provincial land transfer tax.
📍 Do You Pay Extra Land Transfer Tax in Toronto?
Yes — if you’re buying in the City of Toronto, you’ll pay both:
Ontario’s Land Transfer Tax
Toronto’s Municipal Land Transfer Tax (MLTT)
Toronto uses the same tiered structure, effectively doubling your land transfer tax bill.
🎉 First-Time Home Buyer Rebates
Good news if you're buying your first home!
Ontario Rebate: Up to $4,000 off your land transfer tax
Toronto Rebate: Up to $4,475 more, if buying within the city
These rebates can significantly reduce or even eliminate your land transfer tax — but only if you qualify.
📋 Plan Ahead — Avoid Surprises at Closing
Land Transfer Tax is a one-time, upfront cost that many buyers forget to include in their budget. Make sure to talk to your real estate lawyer and REALTOR® early in the process so you're not caught off guard.
🤝 Need Help Calculating Your Land Transfer Tax?
I help buyers across the GTA plan ahead and make informed decisions — including closing cost estimates, rebate eligibility, and more.
📩 Get in touch today to get your custom land transfer tax estimate or start your home search with expert guidance.
📌 DISCLAIMER
The content provided is for informational purposes only and is based on information available at the time during which it was created. No recommendations are express or implied either directly or indirectly. Do not rely on this content to make business or financial decisions or decisions otherwise. Always consult with a professional to seek advice relevant to your individual situation. Not intended to solicit contracted clients.