Ontario Land Transfer Tax Calculator
Ontario Land Transfer Tax: A Guide for Homebuyers
Purchasing property in Ontario comes with various costs, one of the most significant being the land transfer tax (LTT). This tax applies to all real estate transactions and is calculated on a sliding scale based on the purchase price of the property.
Ontario Land Transfer Tax Rates
The Ontario LTT is a marginal tax, meaning different portions of the home’s value are taxed at different rates:
| 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% |
Buyers in Toronto must also pay the Toronto Land Transfer Tax in addition to the provincial tax.
Ontario Land Transfer Tax Calculation Example
For a home purchased at $300,000, the land transfer tax is calculated as follows:
$55,000 × 0.5% = $275
($250,000 – $55,000) × 1.0% = $1,950
($300,000 – $250,000) × 1.5% = $750
Total LTT: $2,975
Ontario Land Transfer Tax Rebate for First-Time Buyers
First-time homebuyers may qualify for a maximum rebate of $4,000. This fully covers the LTT on homes valued up to $368,000. Homes above this threshold receive the full $4,000 rebate, with the buyer responsible for any remaining balance.
| Purchase Price | Land Transfer Tax | First-Time Buyer Rebate | Net Tax Payable |
| $100,000 | $725 | $725 | $0 |
| $200,000 | $1,725 | $1,725 | $0 |
| $227,500 | $2,000 | $2,000 | $0 |
| $600,000 | $8,475 | $4,000 | $4,475 |
Eligibility Requirements for the Rebate
Must be a Canadian citizen or permanent resident
Must be 18 years or older
Must occupy the home within nine months of purchase
Cannot have owned a home anywhere in the world
Spouse must not have owned a home while being your spouse
Newly constructed homes must qualify for a home warranty
Applications must be submitted within 18 months of purchase
How to Apply for the Rebate
Homebuyers can claim the rebate immediately when registering their property. If not claimed at the time of registration, a refund request can be submitted to the Ministry of Finance within 18 months of purchase.
Documents required include:
A completed Ontario Land Transfer Tax Refund Affidavit
A copy of the registered land transfer deed
A copy of the purchase and sale agreement
Proof of residence (e.g., driver’s license, utility bill)
Ontario Non-Resident Speculation Tax
Non-residents purchasing property within the Greater Golden Horseshoe (GGH) are subject to an additional 15% speculation tax. The GGH region covers areas including Toronto, Hamilton, Niagara, Peterborough, and Waterloo. Introduced in 2017, this measure aims to reduce speculative investment by foreign buyers.
Toronto Land Transfer Tax
In addition to the provincial land transfer tax, Toronto imposes a municipal land transfer tax (MLTT). As of January 1, 2024, homes valued above $3 million are taxed at a higher rate, starting at 3.5% and reaching 7.5% for homes valued at $20 million or more.
| 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% |
If you’re purchasing a home in Toronto, you’ll need to budget for this additional cost. For more details, see our comprehensive guide on the Toronto Land Transfer Tax.
This article is for informational purposes only and does not constitute legal advice. For specific guidance, consult a Toronto real estate lawyer at Devry Smith Frank LLP