What You Need To Know About Ontario Land Transfer Tax
Ontario Land Transfer Tax Calculator + Plain-English Guide
Land Transfer Tax (LTT) is one of those closing costs that people forget⌠right up until the lawyer says, âOkay, hereâs your total.â Use the calculator below to estimate your Ontario LTT (and Torontoâs MLTT if applicable), then scroll for the simple âwho pays / how itâs calculated / how to reduce it legallyâ explanation.
Who pays land transfer tax? The buyer. Always the buyer. Sellers do not pay Ontario LTT. If you remember nothing else, remember that.
Want the full âreduce it properlyâ breakdown (rebates, Toronto notes, NRST flags)? Go here: Ontario Land Transfer Tax Rebate Guide.
Land Transfer Tax Calculator
Enter your purchase price. Toggle first-time buyer rebates if you qualify. Toggle Toronto if the property is in the City of Toronto (MLTT applies).
Ontario Land Transfer Tax: what it is (and why people forget it)
Land transfer tax (LTT) is a tax paid when property ownership is transferred and registered. Itâs easy to overlook because it doesnât show up in your monthly mortgage payment â it shows up on closing day, when your wallet is already doing the âplease stopâ face.
In Ontario, LTT applies when you buy land or an interest in land. âLandâ includes buildings, buildings to be constructed, and fixtures (think: built-ins that arenât leaving). Outside of Toronto, many buyers ballpark it around 1â2% depending on price. In Toronto, there is typically an additional municipal land transfer tax (MLTT) on top.
Who pays land transfer tax?
The buyer pays land transfer tax. Sellers donât. If someone tells you otherwise, theyâre either mistaken or trying to sell you something.
LTT is typically payable on registration of the transfer/deed at closing.
Sellers have their own costs (realtor, legal, moving), but Ontario LTT is not one of them.
Ontario LTT rates (current bracket method)
Ontario LTT is marginal (tiered). You donât apply the highest rate to the entire purchase price â you apply each rate to the portion inside that bracket. Official rate reference: Ontario: calculating land transfer tax.
| Bracket (portion of price) | Rate | Notes |
|---|---|---|
| Up to and including $55,000 | 0.5% | Applies to the first slice of the purchase price. |
| $55,000.01 to $250,000 | 1.0% | Only applies to the amount inside this band. |
| $250,000.01 to $400,000 | 1.5% | Again, only the portion inside this band. |
| $400,000.01 to $2,000,000 | 2.0% | This is why LTT grows quickly at ânormalâ Ontario prices. |
| Over $2,000,000 | 2.5% | Higher tier applies to the portion over $2M. |
Buying in Toronto? You typically calculate Ontario LTT and Toronto MLTT. Thatâs why the Toronto toggle exists in the calculator above.
City of Toronto Municipal Land Transfer Tax (MLTT)
The City of Toronto charges a municipal land transfer tax (MLTT) in addition to Ontarioâs provincial LTT. Translation: many Toronto buyers pay âtwo land transfer taxes.â Toronto also publishes luxury brackets for higher-priced residential properties.
Use the Toronto toggle in the calculator above for an estimate, then confirm final numbers with your lawyer. Toronto MLTT is where outdated blog posts and old calculators cause the most confusion.
First-time homebuyers: refunds (not âfull exemptionsâ)
Qualified first-time buyers can receive land transfer tax refunds â generally not a âcomplete exemptionâ unless the tax is small enough that the refund covers it. Ontarioâs maximum first-time home buyer LTT refund is up to $4,000 (official info here: Ontario: first-time homebuyer LTT refunds).
Up to $4,000. If your Ontario LTT is less than that, it can be fully covered.
Torontoâs first-time rebate can be up to $4,475 on the municipal portion, subject to eligibility and program rules.
Eligibility rules matter (age, occupancy intent, and ownership history). Donât âassume you qualifyâ â confirm early with your lawyer. If you want the full reduce-it-legally checklist (rebates, Toronto, NRST flags, and âavoid the common mistakesâ), use: Ontario Land Transfer Tax Rebate Guide.
Exemptions and special cases (the stuff you shouldnât DIY from comments)
Some transfers may be exempt or treated differently â but the details matter. If youâre doing anything outside a normal purchase, get legal advice.
Some transfers between spouses may be exempt in specific circumstances (talk to your lawyer before changing title).
If thereâs an assumed mortgage/debt, the âconsiderationâ can trigger LTT even when âno money changes hands.â
These can be based on fair market value in certain situations.
Leases with long remaining terms can be treated differently for LTT purposes.
When is land transfer tax paid?
In a typical purchase, Ontario land transfer tax is payable when the transfer is registered (closing day). Thatâs why your âcash to closeâ list matters.
If you want to keep things simple: estimate with the calculator, confirm with your lawyer, and keep a buffer for adjustments and legal costs. Closing day is not the day you want surprise math.
Next steps (so this page actually saves you money)
Use the calculator, then do the two things most people skip: confirm eligibility and build a proper closing budget.
Related tax savings: New Home HST Rebate Calculator (Ontario) ⢠Building a custom home and want cost reality? Cost to Build Calculator