Ontario
When you a buy a house, condo or land anywhere in Canada outside Alberta and Saskatchewan, you are subject to land transfer tax. Use Ratehub.ca’s calculator below to determine your land transfer tax amount.
In most provinces in Canada, anyone who acquires a piece of land or a beneficial interest in a piece of land is required to pay land transfer taxes to the provincial government once the transaction has closed. The land transfer taxes must be paid in full at that time, and should be accounted for when putting aside funds for closing costs. The only provinces that have no land transfer tax are Alberta and Saskatchewan.
Land transfer tax is a provincial tax levied on newly acquired land. In nearly every province in Canada (with the exception of Alberta and Saskatchewan), when you purchase a property, you’ll be required to pay a percentage of the property value as a lump sum once the transaction has closed. For more detailed information on how land transfer tax is calculated in each province, see our guide below.
If you acquire property in Alberta or Saskatchewan, you can avoid paying land transfer tax, as it is not charged by either province.
If you are acquiring property elsewhere in Canada, you can typically avoid paying land transfer taxes under the following circumstances:
Please note that the above list is not exhaustive, and you should always get specific details from your local provincial government or seek counsel from an expert (e.g. an accountant) before determining that you do not have to pay land transfer taxes.
There are land transfer rebates available in some provinces. In Ontario, for example, there is a land transfer rebate of up to $4,000 available to first-time home buyers. Similarly, in British Columbia, first-time home buyers are eligible to receive a full land transfer tax refund on homes up to $500,000, and a partial refund on homes from $500,000 – $525,000. In other provinces, like Quebec and Manitoba, there are no land transfer rebates.
For more information on which provinces offer rebates and how they are calculated, please read our guide below.
Find out how you could receive up to $50,000 when you buy and sell in Ontario.
Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home, but it can be a considerably large closing cost. All provinces have a land transfer tax, except Alberta and Saskatchewan, who instead levy a much smaller transfer fee. In most provinces the tax is calculated as a percentage of property value, using asking price as a close estimate. Home buyers in Toronto, however, also incur an additional municipal tax.
To help offset the cost, Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first-time home buyers.
Land transfer taxes are calculated based on the purchase price of your property. Each province sets its own land transfer tax rates, as do some municipalities. Use the calculator above to find the land transfer tax based on your location, or keep reading to find out how land transfer tax is calculated where you live.
Ontario land transfer tax rates were last updated in 2017. This change introduced a $2 million tax bracket, but left the marginal rates and cutoffs for the lowest four price brackets unchanged. A non-resident speculation tax of 15% was also added for the Greater Golden Horseshoe Region.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000.01 to $250,000.00 | 1.0% |
| $250,000.01 to $400,000.00 | 1.5% |
| $400,000.01 to $2,000,000.00 | 2.0% |
| Over $2,000,000 | 2.5% |
The Ontario land transfer tax refund is equal to the full value of the land transfer tax up to a maximum of $4,000.
Based on Ontario land transfer tax rates, the refund will cover the fully taxed amount on houses up to $368,000. For houses over $368,000, home buyers will receive the maximum $4,000 refund and have to pay the remaining LTT balance. To obtain this refund, you need to apply within 18 months after the purchase of the home.
Find out how you could receive up to $50,000 when you buy and sell in Ontario.
If purchasing a home in Toronto, there is an additional municipal land transfer tax (MLTT). Toronto’s land transfer tax applies within the following boundaries: Steeles Avenue as the north border, Etobicoke as the west border, Scarborough as the east border and Lake Ontario as the south border.
On January 1, 2024, the City of Toronto introduced an additional threshold for its MLTT, for homes valued at $3 million and above, that contain a maximum of two single-family residences. The new levy starts at 3.5% of the home’s value, and ranges up to 7.5% for homes valued at $20 million and above.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000.01 to $250,000.00 | 1.0% |
| $250,000.01 to $400,000.00 | 1.5% |
| $400,000.01 to $2,000,000.00 | 2.0% |
| Over $2,000,000 | 2.5% |
| Over $3,000,000 and up to $4,000,000 | 3.5% |
| Over $4,000,000 and up to $5,000,000 | 4.5% |
| Over $5,000,000 and up to $10,000,000 | 5.5% |
| Over $10,000,000 and up to $20,000,000 | 6.5% |
| Over $20,000,000 | 7.5% |
First-time home buyers in Toronto of new and resale homes are eligible to receive a rebate up to a maximum of $4,475.
Find Out How You Could Receive Up To $50,000 When You Buy And Sell In Ontario.
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