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When you a buy a house, condo or land in Toronto you are subject to land transfer tax which is due upon closing. Use Ratehub.ca’s calculator to determine your applicable land transfer tax or view Toronto's current rates below and follow along with our sample calculation.
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Content last updated: July 28, 2020
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 provincial land transfer tax and municipal land transfer tax, as outlined below.
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. This region is shown in the following map:
Purchase price of home | Land title transfer fee | First-time homebuyer rebate |
---|---|---|
Up to and including $55,000 | 0.5% | Full tax rebate |
$55,000.01 to $250,000.00 | 1.0% | Full tax rebate |
$250,000.01 up to and including $400,000.00 | 1.5% | Full tax rebate |
$400,000.01 up to and including $2,000,000.00 | 2.0% | $4,475 maximum tax rebate |
Over $2,000,000 | 2.5% | $4,475 maximum tax rebate |
Let’s assume that you are purchasing a house for $500,000:
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.
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:
Purchase price of home | Land title transfer fee | First-time homebuyer rebate |
---|---|---|
Up to and including $55,000 | 0.5% | Full tax rebate |
$55,000.01 to $250,000.00 | 1.0% | Full tax rebate |
$250,000.01 to $368,333 | 1.5% | Full tax rebate |
$368,334 to $400,000.00 | 1.5% | $4,000 tax rebate |
$400,000.00 to $2,000,000.00 | 2.0% | $4,000 tax rebate |
Over $2,000,000.00 | 2.5% | $4,000 tax rebate |
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.
Purchase price of home | Tax Payable | Tax Refund | Net Tax Payable |
---|---|---|---|
$100,000 | $725 | $725 | $0 |
$200,000 | $1,725 | $1,725 | $0 |
$400,000 | $4,475 | $4,000 | $475 |
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: