Ontario Land Transfer Tax Calculator
Estimate your provincial land transfer tax, the Toronto municipal land transfer tax when it applies, and first time homebuyer rebates.
Houses, condos, and cottages with one or two units count as homes. Commercial, vacant land, and buildings with three or more units follow different brackets with no rebates.
Rebates assume you fully qualify. A spouse’s past home ownership can affect eligibility.
Estimated Land Transfer Tax
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About this estimate. This calculator provides general information and estimates only. It is not legal, tax, or financial advice, and using it does not create a solicitor client relationship. Rates are current as of July 2026 and include the City of Toronto municipal land transfer tax rates in effect since April 1, 2026. Rebate amounts assume full eligibility. Conditions apply, including age, prior home ownership anywhere in the world, a spouse’s ownership history, occupancy of the home within nine months of closing, and for certain amounts Canadian citizenship or permanent residency. The estimate does not include the 25% Ontario Non Resident Speculation Tax or the 10% Toronto Municipal Non Resident Speculation Tax that can apply to foreign buyers, and it does not account for exemptions, apportionments, or special circumstances. Confirm the exact amount payable in your transaction with a lawyer. Call Insight Law Professional Corporation at 647 300 8391 for advice on your situation.
Land transfer tax is a one time tax you pay when you buy a house, condo, or land in Ontario, calculated on the purchase price using marginal brackets. On a $500,000 home the provincial tax is $6,475, and a buyer in Toronto pays a second municipal tax that brings the total to $12,950. Qualifying first time homebuyers can recover up to $8,475 through combined provincial and Toronto rebates.
The calculator above gives you an instant estimate for any purchase price in Ontario. The guide below explains how the tax works, what changed for Toronto buyers on April 1, 2026, who qualifies for a rebate, and how the tax is actually paid on closing day.
What Is Land Transfer Tax in Ontario?
Land transfer tax is a provincial tax charged under Ontario's Land Transfer Tax Act whenever land changes hands for value. The buyer pays it, not the seller. It applies to almost every purchase of a house, condominium, commercial building, or vacant lot in the province, whether the buyer is an individual or a corporation.
The tax is calculated on the value of the consideration. In a typical purchase that means the price you agreed to pay, but it can also include a mortgage you assume from the seller or other benefits that form part of the deal. You pay the tax once, on the day the transfer is registered, and it is entirely separate from your annual property taxes.
The practical takeaway is simple. Treat land transfer tax as cash you must have available on closing day, on top of your down payment, and build it into your budget before you settle on a maximum purchase price.
How Do You Calculate Ontario Land Transfer Tax?
Ontario calculates the tax using marginal brackets, which means each portion of the purchase price is taxed at its own rate. The whole price is never taxed at the top rate.
| Portion of purchase price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| Over $2,000,000 (one or two single family residences) | 2.5% |
The 2.5 percent bracket applies only when the property contains one or two single family residences. Commercial buildings, vacant land, and properties with three or more residential units stay at 2 percent on everything above $400,000.
Here is the full math on a $500,000 house anywhere in Ontario. The first $55,000 is taxed at 0.5 percent, which is $275. The next $195,000 is taxed at 1 percent, which is $1,950. The next $150,000 is taxed at 1.5 percent, which is $2,250. The final $100,000 is taxed at 2 percent, which is $2,000. The total is $6,475.
If you are buying a newly built home from a builder, the tax is calculated on a value net of HST, so the taxable amount usually comes in a little below the advertised price. Your lawyer confirms the exact figure from the statement of adjustments before closing.
How Much Is the Toronto Municipal Land Transfer Tax?
Toronto is the only municipality in Ontario that charges its own land transfer tax on top of the provincial tax. The municipal land transfer tax, usually shortened to MLTT, has applied to every property inside Toronto's boundaries since February 2008 under Chapter 760 of the Toronto Municipal Code. If the property sits in Mississauga, Vaughan, Markham, Ottawa, or anywhere else in the province, only the provincial tax applies.
For homes containing one or two single family residences, the MLTT brackets mirror the provincial brackets up to $2,000,000 and then climb steeply. The current rates published by the City of Toronto are below.
| Portion of purchase price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| $2,000,000.01 to $3,000,000 | 2.5% |
| $3,000,000.01 to $4,000,000 | 4.40% |
| $4,000,000.01 to $5,000,000 | 5.45% |
| $5,000,000.01 to $10,000,000 | 6.50% |
| $10,000,000.01 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
The rates on the portion above $3,000,000 took effect on April 1, 2026 and apply to residential properties containing one or two single family residences. Commercial, vacant, and multi residential properties with three or more units pay between 0.5 percent and 1.5 percent up to $400,000 and 2 percent on everything above that.
Toronto also charges an administration fee of $102.56 plus HST on each MLTT transaction. It is a small line most online calculators leave out, and it appears on your statement of adjustments at closing. The bottom line for anyone comparing Toronto with a neighbouring municipality is that the same purchase price produces roughly double the land transfer tax inside city limits.
What Changed With Toronto Land Transfer Tax on April 1, 2026?
Toronto City Council approved higher MLTT rates for high value homes on December 17, 2025, and the new rates took effect on April 1, 2026. The change applies to residential properties containing one or two single family residences priced above $3,000,000. Each luxury bracket rose by roughly one percentage point. The portion between $3,000,000 and $4,000,000 is now taxed at 4.4 percent instead of 3.5 percent, and the portion above $20,000,000 is now taxed at 8.6 percent instead of 7.5 percent.
The detail that catches buyers is timing. Land transfer tax is based on the date your transfer closes and is registered, not the date you signed the agreement of purchase and sale. A buyer who signed a firm deal in late 2025 but closed after April 1, 2026 pays the new rates. On a $5,000,000 Toronto home, the change added $18,500 to the municipal tax, bringing the MLTT alone to $159,975 and the combined provincial and municipal bill to $271,450.
If you are negotiating a high value purchase in Toronto, price the tax into your offer and talk to your lawyer about the closing date before the agreement becomes firm.
How Much Will You Pay? Sample Calculations by Purchase Price
The table below shows the bill at common price points, assuming a resale home with one or two single family residences, no rebates, and a closing after April 1, 2026. Toronto figures exclude the administration fee and any speculation taxes.
| Purchase price | Ontario tax outside Toronto | Combined tax in Toronto |
|---|---|---|
| $500,000 | $6,475 | $12,950 |
| $750,000 | $11,475 | $22,950 |
| $1,000,000 | $16,475 | $32,950 |
| $1,500,000 | $26,475 | $52,950 |
| $2,000,000 | $36,475 | $72,950 |
| $3,000,000 | $61,475 | $122,950 |
| $5,000,000 | $111,475 | $271,450 |
Two things can move these numbers significantly. First time homebuyer rebates reduce them, and the speculation taxes on foreign buyers increase them dramatically. Both are covered next.
What Rebates Can First Time Homebuyers Claim?
Ontario refunds up to $4,000 of the provincial tax for qualifying first time homebuyers, which eliminates the tax entirely on eligible homes priced up to about $368,000. Toronto adds a separate rebate of up to $4,475 on the MLTT, which covers the full municipal tax on homes up to $400,000. A qualifying first time buyer in Toronto can save up to $8,475 in total.
To qualify, you must be at least 18 years old and you must occupy the home as your principal residence within nine months of closing. You cannot have owned a home, or an interest in a home, anywhere in the world at any time. If you have a spouse, your spouse cannot have owned a home anywhere in the world while you were spouses. Canadian citizenship or permanent residence is also required, although a buyer who becomes a citizen or permanent resident within 18 months of closing can still apply.
In most purchases your lawyer claims the refund directly at closing through the electronic land registration system, so you simply pay the reduced amount rather than waiting for money back. If the refund was missed at closing, you can still apply within 18 months of registration. The provincial rules are published by the Ontario Ministry of Finance and the municipal rebate details are on the City of Toronto website.
[REVIEW FOR DEMET. Confirm this reflects the firm's experience or edit before publishing.] In our practice, the eligibility condition that surprises buyers most often is the spouse rule. A buyer who has never owned property can still lose the refund because their spouse owned a home during the relationship, even a home in another country sold years ago. We confirm rebate eligibility when we open the file so there are no surprises at closing. [End review.]
Do Foreign Buyers Pay Extra Land Transfer Tax in Ontario?
Yes. Ontario charges a Non Resident Speculation Tax, usually called the NRST, equal to 25 percent of the purchase price when a foreign national, a foreign corporation, or a taxable trustee buys residential property anywhere in the province. The 25 percent rate has applied province wide since October 2022. Toronto added its own Municipal Non Resident Speculation Tax of 10 percent effective January 1, 2025, so a foreign buyer purchasing inside Toronto now faces 35 percent in speculation taxes on top of the regular land transfer taxes.
The rules reach further than many buyers expect. If even one purchaser in a group is a foreign entity, the NRST applies to the full purchase price, not just that person's share. A Canadian corporation controlled by individuals who are not citizens or permanent residents can also be caught. On a $1,000,000 Toronto condo, a foreign buyer would face roughly $382,950 in combined land transfer and speculation taxes on closing day.
A rebate of the provincial NRST may be available to a buyer who becomes a permanent resident of Canada within four years of the purchase and meets the occupancy conditions. If there is any chance these taxes touch your transaction, get legal advice before you sign, because the tax is assessed on closing and the amounts are unforgiving.
When and How Do You Pay Land Transfer Tax?
Land transfer tax is due in full on the day your transfer is registered, which is your closing day. You cannot add it to your mortgage. The money comes from the cash you bring to the transaction, alongside your down payment, legal fees, and the other closing costs.
You never send anything to the government yourself. Your real estate lawyer calculates the exact tax, collects it from you with the other funds due before closing, and remits it electronically when the deed is registered through Ontario's electronic land registration system. The Toronto MLTT and any speculation taxes are collected and remitted the same way at the same time.
[REVIEW FOR DEMET. Confirm or adjust the process description, and add the firm's current fixed fee for a residential purchase if you want it published here.] At our firm, we confirm the land transfer tax figure and any rebate eligibility when we open your purchase file, then set out the final amount in the trust ledger we send you before closing, so the amount you wire is the amount that closes the deal. [End review.]
Ask your lawyer for the full closing cash figure, including land transfer tax, early enough to arrange the funds without a last minute scramble. Certified funds and wire transfers take time to organize, and closings do not wait.
Which Transfers Are Exempt From Land Transfer Tax?
Some transfers escape the tax, but the exemptions are narrower than most people assume, and almost every one of them turns on the facts.
Transfers between spouses can be exempt where the only consideration is an assumed mortgage or where the transfer follows a separation agreement or court order. A true gift of property, with no money changing hands and no mortgage taken over, generally attracts no tax because the value of the consideration is nil. The moment the recipient assumes a mortgage, that balance counts as consideration and tax applies to it. Transfers of farmed land between family members and certain conveyances from an estate to beneficiaries can also qualify for relief.
A transfer that looks tax free at the kitchen table often is not once the paperwork is examined. If you are planning a family transfer, have a lawyer review the structure before anything is signed, because the tax follows the registration and is difficult to unwind afterward.
Land Transfer Tax Frequently Asked Questions
How much is land transfer tax on a $500,000 home in Ontario?
The provincial tax on a $500,000 home is $6,475. If the home is in Toronto, the municipal tax adds another $6,475, bringing the total to $12,950 plus a small administration fee. A qualifying first time homebuyer would pay $2,475 outside Toronto or $4,475 in Toronto after both rebates are applied.
Do first time homebuyers pay land transfer tax in Ontario?
Ontario refunds up to $4,000, which eliminates the provincial tax on eligible homes priced up to about $368,000. Toronto adds a rebate of up to $4,475 that covers the full municipal tax up to $400,000. Above those prices you pay the balance. You must occupy the home within nine months and never have owned property anywhere in the world.
Can you add land transfer tax to your mortgage?
No. Land transfer tax is due in full on closing day and is paid from the cash you bring to the transaction, not from mortgage proceeds. Lenders do not finance it. Budget for it alongside your down payment, legal fees, and title insurance so the funds are sitting in your account well before your closing date.
Which Ontario cities charge a municipal land transfer tax?
Only Toronto. Every other municipality in Ontario, including Ottawa, Mississauga, Vaughan, Markham, and Hamilton, charges the provincial tax alone. Buying inside Toronto's boundaries roughly doubles your land transfer tax, so confirm exactly which municipality the property sits in before you compare two listings.
Do you pay land transfer tax on a gifted or inherited property?
It depends on the consideration. A true gift with no payment and no assumed mortgage generally attracts no tax, and transfers from an estate to a beneficiary usually qualify for relief. If the recipient takes over a mortgage, tax applies to that balance. Family transfers should be reviewed by a lawyer before anything is registered.
Is land transfer tax calculated on the price including HST?
For resale homes the tax is calculated on the purchase price. For a newly built home bought from a builder, the tax is calculated on the value of the consideration net of HST, which is usually a little less than the advertised price. Your lawyer confirms the exact taxable amount on the statement of adjustments before closing.
The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.
