HomeHow much is land transfer tax in Toronto?
The average land transfer tax in Toronto is $14,288 which is the provincial tax based on the average home price in Canada. It is important to know the key aspects of land transfer tax in Toronto. This includes who is responsible for paying land transfer tax to strategies that will help you avoid paying land transfer tax.
Toronto land transfer tax
The land transfer taxes shown around Toronto in the above map are based on the average home price in June 2024. The land transfer tax (LTT) shown is a combination of both the Ontario provincial and Toronto municipal land transfer tax. These amounts exclude possible first-time homebuyer rebates available at the provincial and municipal level. There will also be a municipal land transfer tax (MLTT) administration fee of $96.68 + HST that you will be charged for the processing of the transaction.
If the propery you are purchasing is in Toronto, you will also be charged a municipal land transfer tax which is also calculated on the value of the property. Toronto charges this municipal tax to generate revenue that funds services such as healthcare, education and infrastructure.
Land transfer tax rebate in Toronto
A first-time homebuyers rebate is available on the Toronto land transfer tax up to a maximum of $4,475. The full value of the $4,475 municipal rebate is used once the purchased home price is $400,000 or more. When you submit your rebate you will be charged an municipal land transfer tax (MLTT) administration fee which is $208.52 + HST. The first-time home purchase rebate applies to newly constructed and resale residential properties — the rebate does not apply to commercial, industrial or mulit-residential properties. You must comply with the first-time homebuyers criteria to receive the Toronto land transfer tax rebate.
Toronto land transfer tax rates
| Purchase price of home | Marginal tax rate |
|---|---|
| First $55,000 | 0.5% |
| More than $55,000 up to $250,000 | 1.0% |
| More than $250,000 up to $400,000 | 1.5% |
| More than $400,000 up to $2,000,000 | 2.0% |
| More than $2,000,000 up to $3,000,000 | 2.5% |
| More than $3,000,000 up to $4,000,000 | 3.5% |
| More than $4,000,000 up to $5,000,000 | 4.5% |
| More than $5,000,000 up to $10,000,000 | 5.5% |
| More than $10,000,000 up to $20,000,000 | 6.5% |
| More than $20,000,000 | 7.5% |
How to avoid paying land transfer tax in Toronto
There are a few situations in which you can avoid paying land transfer tax in Toronto. 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 Toronto are:
- property transfers betweeen spouses
- property transfers of farmed land between family members
- property transfers to a family business corporation
Land transfer tax rebates in Toronto
There is a first-time home buyer land transfer tax rebate in Toronto which helps reduce the amount of provincial land transfer tax paid when purchasing a home in Toronto. The maximum rebate offered in Toronto is $4,000 which would cover land transfer tax on homes valued up to $368,000 in full.
