Land transfer tax in Ontario is charged on every residential property purchase and is typically the largest single closing cost a buyer pays. On a $900,000 home, Ontario land transfer tax works out to $14,475. If you're buying within the City of Toronto, a second municipal land transfer tax of the same amount applies, bringing the total to $28,950. Understanding how land transfer tax is calculated — and what rebates you may qualify for — is one of the most practical steps in planning your purchase budget. For a full picture of every fee due at closing, see our guide on closing costs for Ontario home buyers.
Land transfer tax is paid on closing day and cannot be rolled into your mortgage. It's a hard cost the buyer must bring to closing in cash (via certified cheque or wire), separate from the down payment.
How Ontario Land Transfer Tax Is Calculated
Ontario land transfer tax is charged on a sliding scale — each rate applies only to the portion of the purchase price within that bracket, similar to marginal income tax rates. You don't pay the top rate on the entire price.
| Portion of purchase price | Tax rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
For a $900,000 purchase, the calculation breaks down as follows:
- First $55,000 × 0.5% = $275
- $55,001–$250,000 ($195,000 range) × 1.0% = $1,950
- $250,001–$400,000 ($150,000 range) × 1.5% = $2,250
- $400,001–$900,000 ($500,000 range) × 2.0% = $10,000
- Total Ontario LTT: $14,475
The Ontario land transfer tax calculator on ontario.ca gives you the exact figure for any purchase price.
Ontario Land Transfer Tax at Common GTA Price Points
| Purchase price | Ontario LTT | Toronto MLTT (if buying in Toronto) | Combined total in Toronto |
|---|---|---|---|
| $600,000 | $8,475 | $8,475 | $16,950 |
| $700,000 | $10,475 | $10,475 | $20,950 |
| $800,000 | $12,475 | $12,475 | $24,950 |
| $900,000 | $14,475 | $14,475 | $28,950 |
| $1,000,000 | $16,475 | $16,475 | $32,950 |
| $1,200,000 | $20,475 | $20,475 | $40,950 |
City of Toronto Municipal Land Transfer Tax
Buyers purchasing within the City of Toronto pay a second land transfer tax — the municipal land transfer tax (MLTT) — at the same sliding-scale rates as the provincial tax. The City of Toronto includes the former municipalities of North York, Scarborough, Etobicoke, York, and East York (all amalgamated in 1998). Buyers in Mississauga, Brampton, Markham, Vaughan, Oakville, and other 905 communities pay only the provincial tax.
This cost difference — typically $10,000–$20,000 depending on price — is one of the concrete financial reasons some buyers choose to search in the 905 region rather than within Toronto's city limits. See our full breakdown in what the Toronto municipal land transfer tax is and who pays it.
First-Time Buyer Land Transfer Tax Rebates
First-time home buyers in Ontario qualify for two rebates:
- Ontario provincial rebate: Up to $4,000, eliminating provincial LTT entirely on purchases up to roughly $368,000.
- Toronto municipal rebate: Up to $4,475 on the MLTT, available only to first-time buyers purchasing within the City of Toronto.
Combined, first-time Toronto buyers can reduce their land transfer tax bill by up to $8,475. On a $900,000 purchase, that brings the combined LTT from $28,950 down to approximately $20,475. Your lawyer applies both rebates on your behalf at closing — no separate application is needed.
To qualify, you must be a Canadian citizen or permanent resident, at least 18 years old, never have owned a home anywhere in the world, and your spouse cannot have owned a home while in the relationship with you. The home must be your principal residence. For a full list of programs available to first-time buyers, see first-time home buyer benefits in Ontario.
Who Pays Land Transfer Tax in Ontario?
The buyer pays land transfer tax — not the seller. It is entirely the buyer's cost and is included in the statement of adjustments your lawyer prepares before closing. Land transfer tax is not negotiable and cannot be shared with the seller as part of offer negotiations in the standard Ontario Agreement of Purchase and Sale.
What buyers often miss is that land transfer tax applies to all property types equally — houses, condos, townhouses, and new construction. For pre-construction condos, LTT is calculated on the full purchase price including upgrades and adjustments as stated in the purchase agreement.
Is Land Transfer Tax Deductible or Refundable?
For owner-occupied principal residences, Ontario land transfer tax is neither tax-deductible nor refundable, except through the first-time buyer rebate. For rental or investment properties, land transfer tax can be added to the property's adjusted cost base, which reduces taxable capital gain when you eventually sell. Speak with a Canadian accountant about the investment property treatment specific to your situation.
Ready to find a home in the GTA? Browse active listings on Condohill and factor land transfer tax into your full budget from the start.
FAQ
How much is land transfer tax on a $900,000 home in Ontario?
Ontario land transfer tax on a $900,000 purchase is $14,475. If you're buying within the City of Toronto, the municipal land transfer tax adds another $14,475, for a combined total of $28,950. First-time buyers reduce this by up to $8,475 through provincial and Toronto rebates.
When is land transfer tax paid in Ontario?
Land transfer tax is paid on the closing date. Your real estate lawyer calculates and remits it to the Ontario government on your behalf as part of the closing process. You cannot pay in installments or defer it — it's due in full on closing day.
Can land transfer tax be added to my mortgage?
No. Land transfer tax must be paid from your own funds at closing. It cannot be rolled into your mortgage balance. This is one of the key reasons lenders and mortgage brokers advise buyers to budget for closing costs separately from their down payment.
Does land transfer tax apply to condos in Ontario?
Yes. Land transfer tax applies to all property types in Ontario — condos, townhouses, detached and semi-detached houses, and new construction. The calculation is the same for all property types based on the purchase price in the Agreement of Purchase and Sale.
How do I claim the first-time buyer land transfer tax rebate?
Your real estate lawyer claims the rebate on your behalf at closing. You don't file a separate application. The rebate reduces the land transfer tax owing at closing — so if your Ontario LTT is $10,475 and you qualify for the full $4,000 rebate, you pay $6,475 on closing day. The Toronto MLTT rebate works the same way.
Is there land transfer tax outside Toronto in the GTA?
Yes — Ontario's provincial land transfer tax applies everywhere in Ontario, including Mississauga, Brampton, Markham, Vaughan, and all 905 municipalities. Only the City of Toronto charges a second (municipal) land transfer tax. Buyers in the 905 region pay only the provincial tax.