Ontario Land Transfer Tax Calculator

How Ontario Land Transfer Tax Is Calculated

Ontario Land Transfer Tax (LTT) is a provincial tax paid whenever real property changes hands in Ontario. It uses a progressive bracket system — the more expensive the property, the higher the marginal rate applied to each slice of the purchase price.

The 2026 brackets are: 0.5% on the first $55,000; 1.0% on $55,001–$250,000; 1.5% on $250,001–$400,000; 2.0% on $400,001–$2,000,000; and 2.5% on amounts over $2,000,000. On a $750,000 home, for example, you do not pay 2.0% on the entire price — you pay each rate only on the portion that falls within that bracket.

The tax is paid at closing through your real estate lawyer, who collects it as part of closing adjustments and remits it to the Ontario government on the date of registration. Unlike income tax, there are no annual filings — it is a one-time charge at the point of purchase.

Based on the official 2026 Ontario Land Transfer Tax rates published by the Ontario Ministry of Finance. Last updated: March 2026.

Toronto's Double Land Transfer Tax Explained

Buyers purchasing property within the boundaries of the City of Toronto pay two separate land transfer taxes: the provincial Ontario LTT plus a Toronto Municipal Land Transfer Tax (MLTT). The Toronto MLTT uses identical brackets and rates to the Ontario LTT, which means buyers in Toronto effectively pay double compared to buyers anywhere else in Ontario.

On a $750,000 Toronto home, a buyer would pay approximately $11,475 in Ontario LTT plus $11,475 in Toronto MLTT — roughly $22,950 before any rebates. In contrast, the same buyer purchasing in Mississauga, Hamilton, or anywhere else in Ontario outside Toronto city limits would pay only the $11,475 Ontario LTT.

The Toronto MLTT was introduced in 2008 and applies only within the City of Toronto boundaries. Properties in the GTA but outside city limits — including Etobicoke, North York, and Scarborough prior to amalgamation — are now within Toronto city limits and subject to both taxes.

This calculator automatically adds Toronto MLTT when you select "Toronto (City of Toronto)" as your location.

First-Time Home Buyer Rebate — How Much Can You Save?

First-time home buyers in Ontario qualify for a rebate of up to $4,000 on the Ontario LTT. This rebate eliminates all Ontario LTT on homes priced at $368,333 or less. For homes above that price, the rebate is reduced proportionally as the tax exceeds $4,000.

Toronto first-time buyers receive an additional $4,475 rebate on the Municipal LTT, bringing the combined maximum to $8,475. This represents a significant saving — equivalent to the Ontario LTT on a $368,333 home plus the Toronto MLTT on a property at the Toronto rebate threshold.

To qualify for the Ontario first-time buyer rebate, you must be a Canadian citizen or permanent resident, be at least 18 years old, occupy the home as your principal residence within 9 months of purchase, and have never previously owned a home anywhere in the world. If only one of two purchasers qualifies as a first-time buyer, the rebate is proportional.

Other Closing Costs to Budget For in Ontario

Land transfer tax is the largest closing cost for most Ontario buyers, but it is not the only one. Plan for the following additional expenses when budgeting your purchase:

Legal fees: Real estate lawyers typically charge $1,500–$2,500 for a standard purchase, including title search, closing adjustments, and registration.

Title insurance: Typically $200–$400, this protects against title defects, survey issues, and mortgage fraud.

Home inspection: $400–$600 for a standard detached home. Strongly recommended for resale properties.

HST on new construction: New homes are subject to HST (13%), though rebates apply for primary residences. Resale homes are exempt from HST.

Comparison with other provinces: Ontario and Toronto have among the highest land transfer taxes in Canada. BC charges a Property Transfer Tax of 1% on the first $200,000, 2% on $200,001–$2,000,000, and 3% above that. Alberta has no provincial land transfer tax at all (only a small land title transfer fee). Quebec has a municipal Welcome Tax (taxe de bienvenue) at lower rates. Ontario buyers, particularly in Toronto, face some of the highest closing costs of any Canadian city.