Ontario Land Transfer Tax Calculator (2025)

Updated
Province:
Home Purchase Price
Land Transfer Tax
💰

Get a $25 bonus when you open a Wealthsimple chequing account

No monthly fees. Earn interest on your balance. Start growing your money today.

Claim Your $25 →

Use referral code WZ0ZTA if prompted

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 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 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 $13,156 on the purchase of this $834,050 home.

Quick reference: Ontario LTT at various home prices

Home Price Provincial LTT After First-Time Rebate
$300,000 $2,975 $0
$400,000 $4,475 $475
$500,000 $6,475 $2,475
$700,000 $10,475 $6,475
$834,050 $13,156 $9,156
$1,000,000 $16,475 $12,475
$1,500,000 $26,475 $22,475

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.

To qualify for the Ontario first-time homebuyer rebate:

  • You must be at least 18 years of age
  • You must be a Canadian citizen or permanent resident
  • You must not have owned a home anywhere in the world previously
  • Your spouse must not currently own a home
  • You must occupy the home as your primary residence within 9 months

The rebate significantly reduces closing costs for first-time buyers. For more on saving for your first home, see the First Home Savings Account (FHSA) calculator.

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. The figures 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

The decline from 2021-22 reflects the cooling housing market and reduced transaction volumes after the Bank of Canada raised interest rates.

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 an 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 between spouses
  • Property transfers of farmed land between family members
  • Property transfers to a family business corporation
  • Certain court-ordered transfers

Land transfer tax in Toronto

Toronto also charges a land transfer tax at a municipal level. This means that buyers in Toronto pay both provincial and municipal land transfer tax, effectively doubling the cost. 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 price.

  • $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 municipal land transfer tax in Toronto for a home price of $834,050 is $13,156 which is the same as the provincial land transfer tax for this home. The land transfer tax between Toronto and Ontario will vary when the home price purchased exceeds $2,000,000, as Toronto’s rates continue to increase above that amount while Ontario’s remain at 2.50%.

Combined LTT for Toronto buyers

Home Price Provincial LTT Toronto MLTT Combined Total
$500,000 $6,475 $6,475 $12,950
$700,000 $10,475 $10,475 $20,950
$834,050 $13,156 $13,156 $26,312
$1,000,000 $16,475 $16,475 $32,950
$1,500,000 $26,475 $26,475 $52,950

These amounts can be significant. On the average Ontario home, a Toronto buyer would pay $26,312 in combined land transfer tax.

Municipal land transfer tax fee

Toronto charges a MLTT administration fee to process each transfer. This is in the amount of $100.06 + HST, working 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 municipal land transfer tax paid or eliminate it completely on homes priced at $400,000 or below.

Combined with the Ontario first-time homebuyer rebate of $4,000, first-time buyers in Toronto can save up to $8,475 in land transfer tax.

There is also an administrative fee to process the rebate request which is $215.82. Note 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 is charged on homes purchased by foreign buyers. This speculation tax is 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.

Who pays for the land transfer tax in Ontario?

The buyer is responsible for paying the land transfer tax in Ontario. The seller does not have to pay for the land transfer tax. Land transfer tax is typically due upon closing and is handled by your real estate lawyer.

Budgeting for your Ontario home purchase

Land transfer tax is one of several closing costs to plan for when buying in Ontario. Other important resources:

Frequently asked questions

How much is land transfer tax in Ontario?

Ontario land transfer tax uses marginal rates from 0.5% to 2.5%. On the average Ontario home price of $834,050, the provincial LTT would be $13,156.

Does Toronto charge an additional land transfer tax?

Yes. Toronto charges a Municipal Land Transfer Tax (MLTT) on top of provincial LTT, effectively doubling the cost. On an $834,050 home, the combined total is $26,312.

Is there a first-time homebuyer rebate?

Yes. Ontario offers up to $4,000 off provincial LTT. In Toronto, there is an additional MLTT rebate of up to $4,475. Combined, first-time buyers in Toronto can save up to $8,475.

Who pays land transfer tax in Ontario?

The buyer is responsible for paying all land transfer tax. It is due at closing.

Land transfer tax calculators across Canada