Land Transfer Tax in Ontario: How Much Will You Pay?
Ontario's land transfer tax is one of the largest closing costs a homebuyer faces — on a $700,000 home, the provincial tax alone is approximately $9,475, and buyers within the City of Toronto pay a second municipal land transfer tax on top of that, bringing the combined total to roughly $18,950. First-time buyers can claim a provincial rebate of up to $4,000, plus an additional Toronto municipal rebate of up to $4,475 if buying in the city — a combined maximum saving of $8,475. This guide explains exactly how Ontario's land transfer tax is calculated, what first-time buyers can save, and how the Toronto municipal tax works.
Disclaimer: This is general information, not legal or financial advice. Land transfer tax is calculated and remitted by your real estate lawyer at closing. Confirm exact amounts with your lawyer before your closing date.
How Ontario's Land Transfer Tax Is Calculated
Ontario's land transfer tax uses a marginal (tiered) system — like income tax, only the portion of the purchase price within each bracket is taxed at that bracket's rate, not the entire price. The rates as of 2026 are as follows:
| Purchase Price Portion | Provincial Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| Above $2,000,000 | 2.5% |
To calculate the total tax, you apply each rate only to the portion of the price that falls within that bracket, then add the results together. For example, on a $700,000 purchase:
- 0.5% × $55,000 = $275
- 1.0% × $195,000 ($55,001–$250,000) = $1,950
- 1.5% × $150,000 ($250,001–$400,000) = $2,250
- 2.0% × $300,000 ($400,001–$700,000) = $6,000
- Total provincial LTT: $10,475
Land transfer tax is paid at closing by the buyer — not the seller — and is remitted by your lawyer. It cannot be rolled into your mortgage and must be paid in cash on closing day.
Ontario Land Transfer Tax: Worked Examples at Common Price Points
The table below shows the provincial land transfer tax at common Ontario purchase prices, along with the net amount owing after the first-time buyer rebate where applicable.
| Purchase Price | Provincial LTT | First-Time Buyer Rebate | Net LTT Owing |
|---|---|---|---|
| $368,000 | $4,000 | $4,000 (full rebate) | $0 |
| $500,000 | $6,475 | $4,000 | $2,475 |
| $700,000 | $10,475 | $4,000 | $6,475 |
| $900,000 | $14,475 | $4,000 | $10,475 |
| $1,069,700 (Toronto avg.) | $17,894 | $4,000 | $13,894 |
| $2,000,000 | $36,475 | Not typically applicable | $36,475 |
Provincial LTT figures are calculated using the marginal rate brackets above, current as of 2026. The $368,000 threshold reflects the price at which the $4,000 first-time buyer rebate covers the full provincial tax. Toronto average home price of $1,069,700 is based on TRREB data for Q1 2026. These are estimates — confirm exact figures with your real estate lawyer.
Toronto's Municipal Land Transfer Tax: A Second Tax for City Buyers
Buyers purchasing within the City of Toronto pay a second land transfer tax — the Toronto Municipal Land Transfer Tax (MLTT) — on top of the provincial tax. Toronto is the only municipality in Ontario that charges its own land transfer tax; buyers in Mississauga, Brampton, Markham, Vaughan, Hamilton, and all other Ontario cities pay only the provincial tax.
The Toronto MLTT uses the same marginal bracket structure as the provincial tax for homes up to $3,000,000. As of April 1, 2026, the City of Toronto introduced higher luxury brackets for residential properties above $3,000,000 — these new tiers range from 4.4% to 8.6% on the portion of value above $3 million. For the vast majority of buyers, only the standard brackets below $3 million apply.
| Purchase Price | Provincial LTT | Toronto MLTT | Combined Total | Combined (after max $8,475 FTB rebate) |
|---|---|---|---|---|
| $500,000 | $6,475 | $6,475 | $12,950 | $4,475 (first-time buyer) |
| $700,000 | $10,475 | $10,475 | $20,950 | $12,475 (first-time buyer) |
| $900,000 | $14,475 | $14,475 | $28,950 | $20,475 (first-time buyer) |
| $1,069,700 (Toronto avg.) | $17,894 | $17,894 | $35,788 | $27,313 (first-time buyer) |
Toronto MLTT rates mirror provincial rates for homes under $3M. First-time buyer combined rebate maximum is $8,475 ($4,000 provincial + $4,475 Toronto municipal). These figures are estimates — confirm with your lawyer. Rates reflect April 2026 schedules per Ratehub.ca, Deeded, and Dwell Law (updated April 2026).
Ontario First-Time Buyer Land Transfer Tax Rebate: What You Need to Know
First-time buyers in Ontario can receive a full rebate of provincial land transfer tax up to $4,000 — which covers the entire tax on homes priced at $368,000 or below. For homes above that price, the $4,000 is subtracted from the total tax owing. Toronto first-time buyers can also claim a separate municipal rebate of up to $4,475.
- Who qualifies: You must be a Canadian citizen or permanent resident, at least 18 years old, purchasing a principal residence, and must never have owned or held any interest in a home anywhere in the world. If purchasing with a spouse or partner, they must also qualify as a first-time buyer for the full rebate — if only one of you qualifies, a partial rebate may be available based on your share of ownership.
- How it's applied: The rebate is applied at closing by your lawyer — you don't pay the full tax and then wait for a refund cheque. If the rebate is not claimed at closing, you can apply to the Ontario Ministry of Finance within 18 months.
- What it covers: Only the provincial land transfer tax. Toronto's municipal rebate (up to $4,475) is separate and must be claimed separately at closing — both rebates can be applied simultaneously if you qualify.
- Important edge case: If your spouse previously owned a home, you do not qualify as a couple — but you may be eligible for a partial rebate reflecting your individual ownership share. Discuss this with your real estate lawyer before closing, as the rules here are specific.
How Ontario Compares to Other Provinces
Ontario's land transfer tax — particularly with the Toronto MLTT — is one of the highest in Canada relative to typical home prices. The table below compares the tax on a $700,000 purchase across several provinces.
| Province / City | LTT on $700,000 Purchase | First-Time Buyer Relief |
|---|---|---|
| Alberta (Calgary / Edmonton) | ~$770 (registration fees only) | No rebate (no tax to rebate) |
| Ontario (outside Toronto) | ~$10,475 | Up to $4,000 rebate |
| Ontario (City of Toronto) | ~$20,950 | Up to $8,475 combined rebate |
| British Columbia | ~$12,000 | Full exemption up to $500,000; partial $500K–$525K |
| Manitoba | ~$10,850 | Up to $4,500 rebate |
Alberta registration fees on $700,000 calculated using $50 + $5 per $5,000 formula (effective October 20, 2024). Ontario, BC, and Manitoba figures are estimates based on published 2026 rate schedules. This comparison is for general reference — confirm exact figures with a real estate lawyer or the relevant provincial authority.
Frequently Asked Questions About Land Transfer Tax in Ontario
How much is land transfer tax on a $700,000 home in Ontario?
The provincial land transfer tax on a $700,000 Ontario home is approximately $10,475, calculated using Ontario's marginal rate brackets. If the home is located within the City of Toronto, an additional Toronto Municipal Land Transfer Tax of approximately $10,475 applies, bringing the combined total to roughly $20,950. First-time buyers can subtract up to $4,000 from the provincial amount (or up to $8,475 combined in Toronto). These are estimates — confirm the exact amount with your real estate lawyer before closing.
Does the Toronto municipal land transfer tax apply in Mississauga or Brampton?
No. The Toronto Municipal Land Transfer Tax (MLTT) applies only to properties within the official boundaries of the City of Toronto — generally defined as north of Lake Ontario, east of Etobicoke, south of Steeles Avenue, and west of Scarborough. Buyers in Mississauga, Brampton, Markham, Vaughan, Oakville, Hamilton, Burlington, or anywhere else in Ontario outside the City of Toronto pay only the provincial land transfer tax.
What is the first-time buyer land transfer tax rebate in Ontario?
First-time buyers in Ontario can receive a rebate of up to $4,000 on the provincial land transfer tax. This covers the full tax on homes priced at $368,000 or below. For homes above $368,000, the $4,000 is subtracted from the total owing. To qualify, you must never have owned or held any interest in a property anywhere in the world, be a Canadian citizen or permanent resident, be at least 18 years old, and occupy the home as your principal residence. Toronto first-time buyers can also claim a separate municipal rebate of up to $4,475, for a combined maximum saving of $8,475. This is general information — confirm your eligibility with a real estate lawyer.
Is land transfer tax the same as property tax in Ontario?
No — these are two entirely different charges. Land transfer tax is a one-time cost paid at closing when ownership of a property is transferred from seller to buyer. Property tax is an annual charge levied by your local municipality based on the assessed value of your home, used to fund local services like schools, roads, and transit. Land transfer tax is not tax-deductible and cannot be claimed on your personal income tax return.
Can land transfer tax be added to the mortgage in Ontario?
No. Land transfer tax must be paid in cash on closing day — it cannot be rolled into your mortgage. This makes it one of the most important items to plan for in your closing cost budget, alongside legal fees, title insurance, and your down payment. On a $700,000 Toronto purchase, the combined provincial and municipal land transfer tax alone can exceed $20,000 in cash required on closing day before any rebates are applied.
More Resources for Ontario Homebuyers
To understand the full picture of buying costs in Ontario, use our Affordability Calculator to model your total upfront costs including land transfer tax. To compare costs across provinces, see our guide to land transfer tax in Alberta — where no provincial tax applies at all. For first-time buyers, see our First-Time Homebuyer Guide for Canada for a full breakdown of federal programs available on top of the Ontario rebate.