Ontario Land Transfer Tax Calculator

Land Transfer Tax

Land transfer tax Ontario

Home prices are already quite expensive in Ontario with an average home price of $834,050 in January 2025. Since land transfer tax in Ontario is based on a percentage of the home sale price land transfer tax on the average priced home in Ontario would be $13,156. For homes that are located in Toronto you can expect to pay even more as Toronto charges a municipal land transfer tax in addition to the provincial land transfer tax. If you are a first-time homebuyer there is a land transfer tax rebate that allows you to save when purchasing your first home.

When you purchase land in Ontario you will have to pay a provincial land transfer tax that is calculated as a marginal tax based on the purchase price of the home. Land transfer tax in Ontario is always paid by the buyer this is also true when purchasing a home elsewhere in Canada.

This table breaks down the marginal tax rate that is charged as land transfer tax based on the purchase price of the home in Ontario.

Home Price	Marginal tax rate
first $55,000	0.50%
over $55,000 up to $250,000	1.00%
over $250,000 up to $400,000	1.50%
over $400,000 up to $2,000,000	2.00%
over $2,000,000	2.50%

Ontario land transfer tax example

Let’s go over an example of how land transfer tax in Ontario is calculated. For this example we will use the purchase price of the average home in Ontario which is $834,050 as of January 2025.

We will start off by calculating tax on the first land transfer tax bracket.

$55,000 x 0.50% = $275
$834,050 - $55,000 = $779,050 left

The next tax bracket charges 1.00% on amounts more than $55,000 up to $250,000.

$195,000 x 1.00% = $1,950
$779,050 - $195,000 = $584,050

The next tax bracket charges 1.5% on amounts more than $250,000 up to $400,000.

$150,000 x 1.50% = $2,250
$584,050 - $150,000 = $434,050

The next tax bracket charges 2.00% on amounts more than $400,000 up to $2,000,000.

$434,050 * 2.00% = $8,681

We can then add up all of the taxes from each bracket to find our total land transfer tax amount.

$275 + $1,950 + $2,250 + 8,681 = $13,156

The total provincial land transfer tax for Ontario would be $8,681 on the purchase of this $834,050 home.

Ontario first-time homebuyers rebate

The first-time homebuyers rebate in Ontario allows a rebate of up to $4,000 on the land transfer tax when purchasing a property. This rebate helps to reduce land transfer tax and can eliminate it completely if the purchase price is $368,333 or lower.

How much does Ontario make on land transfer tax?

Ontario relies on land transfer tax as it makes up a significant portion of taxation revenue in Canada. The figures in the list below are the land transfer tax revenue in millions over the years in Ontario.

Actual 2021-22: $5,827
Actual 2022-23: $4,443
Actual 2023-24: $3,538
Current Outlook 2024-25: $3,620

How to avoid paying land transfer tax in Ontario

There are a few situations in which you can avoid paying land transfer tax in Ontario. It is important to consult and expert to know if you are required to pay land transfer tax. Some potential situations that allow for land transfer tax exemptions in Ontario are:

property transfers betweeen spouses
property transfers of farmed land between family members
property transfers to a family business corporation

Land transfer tax in Toronto

Toronto also charges a land transfer tax at a municipal level. This chart breaks down the municipal land transfer tax (MLTT) rates for Toronto.

Home Price	Marginal tax rate
first $55,000	0.50%
over $55,000 up to $250,000	1.00%
over $250,000 up to $400,000	1.50%
over $400,000 up to $2,000,000	2.00%
over $2,000,000 up to $3,000,000	2.50%
over $3,000,000 up to $4,000,000	3.50%
over $4,000,000 up to $5,000,000	4.50%
over $5,000,000 up to $10,000,000	5.50%
over $10,000,000 up to $20,000,000	6.50%

Toronto land transfer tax example

Since Toronto’s municipal land transfer tax (MLTT) is charged in addition to provincial land transfer tax, we will continue using the average home price of $834,050 in Ontario based on the assumption that this home is located in Toronto.

We will start by following the same process as when we calculated the Ontario land transfer tax by calculating the tax at each tier in relation to the total home value:

The first bracket charges tax of 0.50% on the first $55,000 of the purchase pice.

$55,000 x 0.50% = $275
$834,050 - $55,000 = $779,050 left

The next bracket allows for a total of $195,000 at a tax rate of 1.00%.

$195,000 x 1.00% = $1,950
$779,050 - $195,000 = $584,050 left

The next tax bracket charges 1.50% on the next $150,000 of home value.

$150,000 x 1.50% = $2,250
$584,050 - $150,000 = $434,050 left

This bracket charges tax of 2.00% on amounts more than $400,000 up to $2,000,000. Since our total home purchase price is less than $2,000,000 we can apply the rate of 2.00% to our remaining $434,050 of home price.

$434,050 * 2.00% = $8,681

To arrive at our total MLTT we can add the amounts from each tier.

$275 + $1,950 + $2,250 + 8,681 = $13,156

Total municiapl land transfer tax in Toronto for a home price of $834,050 is $13,156 which is the same as the land transfer tax in Ontario for this home. The land transfer tax between Toronto and Ontario will vary when the home price purchased exceeds $2,000,000. The rates of tax in Toronto will continue to increase for home prices above $2,000,000 while Ontario rates will remain at 2.00%.

Municipal land trasfer tax fee

Toronto charges a MLTT administration fee to process each transfer. This is in the amount of $100.06 + HST. This works out to a total of $113.07.

Toronto first-time homebuyers rebate

Toronto also provides a rebate to first-time homebuyers up to an amount of $4,475. This rebate helps to reduce total land trasfer tax paid or eliminate it completely if total land transfer tax is below $4,475. This would eliminate land transfer tax completely on homes priced at $400,000 or below.

There is also an administrative fee to process the rebate request which is $215.82.

It is important to know that the first-time homebuyers rebate is not available to foreign buyers.

Toronto municipal non-resident speculation tax

In efforts to improve home affordability in Toronto effective January 1, 2025 a Municipal Non-Resident Speculation Tax (MNRST) of 10 percent will be included on homes purchased by foreign buyers. This speculation tax will be charged based on the value of consideration of the property which normally refers to the amount paid for the land in addition to the remainder of any mortgage debt assumed. This tax is in addition to the municipal land transfer tax.