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Ontario Land Transfer Tax Calculator

When you a buy a house or condo in Ontario you are subject to land transfer tax on closing. Use Ratehub.ca’s calculator to determine your land transfer tax or view Ontario’s current rates below.

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Determining your land transfer tax

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Land transfer tax rates in Ontario1

The Ontario land transfer tax (LTT) is a marginal tax, and each portion of your home’s value is taxed at a unique rate. These tax rates are as follows:

Purchase price of home Marginal tax rate
First $55,000 0.5%
$55,000.01 to $250,000.00 1.0%
$250,000.01 to $400,000.00 1.5%
$400,000.01 to $2,000,000.00 2.0%
Over $2,000,000 2.5%


If you are purchasing a home in Toronto, a Toronto Land Transfer Tax will also apply (see below). Beyond the land transfer tax, you will also have to pay other closing costs in Ontario when purchasing a home. These closing costs could include fees for an Ontario real estate lawyer and other buyer's fees.


Example Ontario land transfer tax calculation2

Let’s assume that you are purchasing a house for $300,000:

Ontario land transfer tax calculation:

  • $55,000 first marginal tax bracket
    × 0.50% marginal tax rate 
    = $275 land transfer tax

  • ( $250,000 upper marginal tax bracket - $55,000 lower marginal tax bracket )
    × 1.0%
    marginal tax rate
    = $1,950 land transfer tax

  • ( $300,000 upper marginal tax bracket - $250,000 lower marginal tax bracket )
    × 1.5%
    marginal tax rate
    = $750 land transfer tax

  • $275 + $1,950 + $750 
    = $2,975 total Ontario land transfer tax


Ontario land transfer tax rebate3

For first-time homebuyers, there is a maximum $4,000 tax rebate on the Ontario land transfer tax. Based on Ontario’s land transfer tax rates, this refund will cover the full tax for homes up to $368,000. For homes purchased for more than $368,000, buyers will receive the full $4,000 rebate and pay the remaining LTT balance.

The following table contains several example calculations of the Ontario land transfer tax rebate:

Purchase price of home Land title transfer tax First-time homebuyer rebate Net tax payable
$100,000 $725 $725 $0
$200,000 $1,725 $1,725 $0
$227,500 $2,000 $2,000 $0
$600,000 $8,475 $4,000 $4,475

 

First-time homebuyer eligibility in Ontario

  • You must be a Canadian citizen or permanent resident of Canada.
  • You must be 18 years or older.
  • You must occupy the home within nine months of purchase.
  • You cannot have owned a home or interest in a home anywhere in the world.
  • Your spouse cannot have owned a home while being your spouse (but may be a previous home owner).
  • If the home is newly constructed, it must be eligible for home warranty.
  • Homebuyers must apply for the refund within 18 months of purchase.

Application

Taxpayers can claim an immediate refund when registering the land transfer papers and paying their taxes. Tax rebate application forms are available online for home buyers registering electronically or on paper at government offices.

If the rebate is not claimed at the time of registration, the full tax is paid and a refund claim can be made to the Ministry of Finance within 18 months. Information required for the application include:

  • A completed Ontario Land Transfer Tax Refund Affidavit for First Time Purchasers of Eligible Homes
  • A copy of the registered land transfer deed
  • A copy of the agreement of purchase and sale
  • A copy of a document that provides proof of residence, such as a driver’s license, telephone/cable bills, etc.

Ontario non-resident speculation tax

If you are a non-resident of Ontario, you will also be charged a 15% speculation tax on all property purchases within the Greater Golden Horseshoe Region (GGH). The GGH includes the entire Greater Toronto Area, stretching to Peterborough and Northumberland in the east, Wellington and Branford in the west and extending to the Canadian-American border at Niagara in the south.

This tax was introduced in 2017 in an attempt to reduce speculative investing by foreign actors inflating the market.

Toronto land transfer tax

Property sales in the Greater Toronto Area are also subject to the City of Toronto's municipal land transfer tax in addition to the provincial land transfer tax. The following table outlines the current tax rates:

Purchase price of home Marginal tax rate
First $55,000 0.5%
$55,000.01 to $250,000.00 1.0%
$250,000.01 to $400,000.00 1.5%
$400,000.01 to $2,000,000.00 2.0%
Over $2,000,000 2.5%

We have a dedicated article on Toronto Land Transfer Tax with more information.

 

References and notes

  1. Calculating Land Transfer Tax, Ontario Ministry of Finance
  2. Calculating Land Transfer Tax, Ontario Ministry of Finance
  3. Land Transfer Tax Refunds for First-Time Homebuyers, Ontario Ministry of Finance

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