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. Home buyers 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 charged 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 home buyer, 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 home buyers 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.
• Home buyers 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 home buyers, 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.
• Home buyers 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 home buyers 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.

December 2023 Toronto housing market update

On December 5, 2023, the Toronto Regional Real Estate Board (TRREB) published the most recent Greater Toronto Area (GTA) housing market figures for the month of November 2023.

As has been the trend in recent months, steep borrowing costs have made it challenging for interested buyers to participate in the market; this was evident in sluggish sales over the course of the month, with a total of 4,236 properties trading hands, a year-over-year decline of 6%.

Meanwhile, a flood of new inventory came to the market, with 10,545 listings posted –a whopping 16.5% increase compared to last year, when listings were at a historical low. Total active listings on the market are up 40.7% on an annual basis, with 16,759 homes available for sale.

That’s effectively chilled price growth in the GTA; the average home price came in at $1,082,179 in November – flat from last year, and down -2.2% from October.

“Inflation and elevated borrowing costs have taken their toll on affordability. This has been no more apparent than in the interest rate-sensitive housing market,” said TRREB President Paul Baron.

Nevertheless, it’s anticipated that as interest costs subside, buyer activity will pick back up. Already, lower bond yields have allowed lenders to discount their fixed mortgage rates in recent weeks.

“However, it does appear relief is on the horizon. Bond yields, which underpin fixed rate mortgages have been trending lower and an increasing number of forecasters are anticipating Bank of Canada rate cuts in the first half of 2024. Lower rates will help alleviate affordability issues for existing homeowners and those looking to enter the market,” Baron adds.

Read: GTA home sales slump in November due to steep mortgage rates

Toronto housing market forecast

Based on TRREB’s 2023 Market Outlook and Year in Review Report, we can expect that home sales in the Greater Toronto Area will continue to slow in 2023, although demand is anticipated to rebound in the latter half of the year. Should this happen, it could drive home prices higher. TRREB is predicting a total of 70,000 home sales in the GTA in 2023, a year-over-year decline of 6.7% and the softest year for demand in the last six years. The average Toronto home price in 2023 is forecast to be $1,140,000 - a year-over-year decline of 4.1%. However, it’s important to note that this price is still far higher than pre-pandemic price levels - to put things into perspective, it is 39% greater than the 2019 average Toronto home price of $819,153. 

Toronto's Vacant Home Tax

On January 1, 2022, the City of Toronto officially implemented a Vacant Home Tax (VHT), which must be paid on all residential properties that are unoccupied for a minimum of six months during the calendar year. The tax became payable in 2023, and it is now mandatory for all homeowners in the city to self-declare their home’s occupancy status each year, even if they live in the property. 

The VHT is 1% of the property’s Current Value Assessment, which is provided by the Municipal Property Assessment Corporation (MPAC). For example, if your home is valued at $1,000,000, your VHT bill would come to $10,000: (1% x $1,000,000).

The Vacant Home Tax only applies to unoccupied residences; those who live in their home as their principal residence, have a tenant with a minimum 30-day lease, or have approved another occupant (such as a family member) living there do not have to pay the tax. There are also specific exemptions including:

• Estates where the homeowner has died during the taxable year 
• If the homeowner is in a hospital, long-term care or supportive facility for at least six months
• There are repairs or renovations underway that are extensive enough to prevent anyone from dwelling in the home

You can read the full list of who is impacted by the Vacant Home Tax on the Ratehub Blog.

The Vacant Home Tax can also impact those who are buying or selling a home, depending on the transaction’s closing date; if the sale closes between January 1st of the calendar year and the end of the tax declaration period (February 2, 2023), the seller is responsible for completing the declaration. If the sale closes after the declaration deadline, the buyer must then confirm its status the following tax year.

Failure to make a Vacant Home Tax declaration by the deadline, or making a false declaration, can result in a $250 - $10,000 fine. If a homeowner is subject to the VHT and does not pay on time, they will be charged 1.25% of the amount the following day, and then on the first of each following month. If they fail to pay the VHT, it is rolled into their property taxes for the year, and a lien can be put on the property.

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