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Toronto Land Transfer Tax
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 2017 rates below and follow along with our sample calculation.
Toronto land transfer tax calculator
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Toronto land transfer tax map
The Toronto land transfer tax is charged to buyers who purchase homes in the following area:
Land transfer tax rates in Toronto – Updated August 2017 1
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. Buyers of real estate in Toronto must pay both the provincial land transfer tax and municipal land transfer tax, as outlined below.
Ontario land transfer tax rates2
| 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 |
Toronto land transfer tax rates3
| 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 |
The rates above apply to all homes within the boundaries of Toronto. Specifically, the homes south of Steeles Avenue, east of Etobicoke, west of Scarborough and north of Lake Ontario. The land transfer tax applies whether you're buying a Toronto townhouse, house or condo.
Toronto land transfer tax example calculation
Let’s assume that you are purchasing a house for $500,000:
Ontario 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)
1.00%
marginal tax rate
=
$1,950
land transfer tax
( $400,000
upper marginal tax bracket
$250,000
lower marginal tax bracket)
1.50%
marginal tax rate
=
$2,250
land transfer tax
( $500,000
property value
$400,000
lower marginal tax bracket)
2.00%
marginal tax rate
=
$2,000
land transfer tax
$275
land transfer tax
$1,950
land transfer tax
$2,250
land transfer tax
$2,000
land transfer tax
=
$6,475
total land transfer tax
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)
1.00%
marginal tax rate
=
$1,950
land transfer tax
( $400,000
upper marginal tax bracket
$250,000
lower marginal tax bracket)
1.50%
marginal tax rate
=
$2,250
land transfer tax
( $500,000
property value
$400,000
lower marginal tax bracket)
2.00%
marginal tax rate
=
$2,000
land transfer tax
$275
land transfer tax
$1,950
land transfer tax
$2,250
land transfer tax
$2,000
land transfer tax
=
$6,475
total land transfer tax
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.
| 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 |
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.
Land transfer tax rebates in Toronto4
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.