Toronto Land Transfer Tax Calculator

Land transfer tax rates in Toronto¹

The cost of your land transfer tax (LTT) is a percentage of your home’s value, estimated using the property’s purchase price. Note that the LTT is not just a simple average tax of your home’s value. Instead, the LTT is a marginal tax, and each portion of your house’s value is taxed at its own marginal tax rate. Homebuyers in Toronto must pay both the Ontario provincial land transfer tax and municipal land transfer tax, as outlined below.

Toronto land transfer tax map

The Toronto Land Transfer tax is charge on all home purchases within the boundaries of Toronto. This is defined as south of Steeles Avenue, east of Etobicoke, west of Scarborough and north of Lake Ontario. The Toronto region is shown in the following map:

Toronto land transfer tax rates

Toronto land transfer tax example calculation

Let’s assume that you are purchasing a house for $500,000. Remember, as a Toronto homebuyer, you must pay both provincial Ontario land transfer tax and municipal Toronto transfer tax.

1. Ontario land transfer tax

• $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
  
  
• ( $400,000 upper marginal tax bracket - $250,000 lower marginal tax bracket )
  × 1.5% marginal tax rate
  = $2,250 land transfer tax
  
  
• ( $500,000 property value - $400,000 lower marginal tax bracket )
  × 2.0% marginal tax rate
  = $2,000 land transfer tax
  
  
• $275 + $1,950 + $2,250 + $2,000
  = $6,475 total Ontario land transfer tax

2. Toronto land transfer tax

• $55,000 first marginal tax bracket
  × 0.50% 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
  
  
• ( $400,000 upper marginal tax bracket - $250,000 lower marginal tax bracket )
  × 1.5% marginal tax rate
  = $2,250 land transfer tax
  
  
• ( $500,000 property value - $400,000 lower marginal tax bracket )
  × 2.0% marginal tax rate
  = $2,000 land transfer tax
  
  
• $275 + $1,950 + $2,250 + $2,000
  = $6,475 total Toronto land transfer tax

3. Total land transfer tax 

• $6,475 Ontario land transfer tax + $6,475 Toronto land transfer tax
  = $12,950 total land transfer tax

Land transfer tax rebates in Toronto²

For first-time homebuyers in Toronto, there is also a maximum $4,475 tax rebate on the municipal LTT. Based on Toronto’s tax rate, the rebate will cover the full Toronto LTT on homes worth $400,000 or less. The Toronto LTT rebate is calculated similarly to that of Ontario’s.

Eligibility for Toronto land transfer tax rebate

• You must be a Canadian citizen or permanent resident of Canada.
• You must be 18 years or older.
• You must occupy the home within 9 months of purchase.
• Your spouse cannot have owned a home while being your spouse (but may be a previous homeowner).
• If the home is newly constructed, it must be eligible for home warranty.
• Homebuyers must apply for the refund within 18 months of purchase.

Ontario land transfer tax rates³

It's important to remember that the Toronto land transfer tax is levied in addition to the Ontario Land Transfer Tax. This means you'll be required to pay two different land transfers taxes. Here are the current Ontario land transfer tax rates:

Land transfer tax refund in Ontario

For first-time homebuyers, there is a maximum $4,000 tax refund 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 $368,333. For homes purchased for more than $368,333, buyers will receive the full $4,000 rebate and pay the remaining LTT balance.

Eligibility for Ontario land transfer tax refund

• You must be a Canadian citizen or permanent resident of Canada.
• You must be 18 years or older.
• You must occupy the home within 9 months of purchase.
• Your spouse cannot have owned a home while being your spouse (but may be a previous homeowner).
• 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 and paying the tax. Forms are available for homebuyers registering electronically or on paper.

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. The application information required includes:

• 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.

References and notes:

1. Municipal Land Transfer Tax, City of Toronto
2. Municipal Land Transfer Tax Rebate Opportunities, City of Toronto
3. Calculating Land Transfer Tax, Ontario Ministry of Finance