Work out the land transfer tax on a home in Ontario or the City of Toronto, including first-time homebuyer refunds, so you know how much cash to have ready for closing.
| Ontario land transfer tax | |
|---|---|
| Ontario first-time buyer refund | |
| Toronto municipal land transfer tax | |
| Toronto first-time buyer rebate | |
| Total you pay |
See how it's calculated
This is an estimate for a home with one or two single-family homes on it. Ontario rates have been in place since January 1, 2017 and Toronto rates since April 1, 2026. On a new build the tax is based on the price including HST. Your real estate lawyer will confirm the exact amount.
How land transfer tax works in Ontario
When you buy a home in Ontario, you pay land transfer tax to the province. It is charged in brackets, like income tax, so each slice of the price is taxed at its own rate:
- 0.5% on the first $55,000
- 1.0% from $55,000 to $250,000
- 1.5% from $250,000 to $400,000
- 2.0% from $400,000 to $2,000,000
- 2.5% above $2,000,000 (for a home with one or two single-family homes on it)
On a $750,000 home, that works out to $11,475.
Toronto buyers pay twice
If the home is in the City of Toronto, you also pay the Municipal Land Transfer Tax (MLTT). Up to $2 million, its rates match the province’s, so a Toronto buyer pays roughly double. Above $3 million, Toronto’s rates climb steeply. Since April 1, 2026 they run from 4.4% to 8.6% on the most expensive homes.
The MLTT only applies inside the City of Toronto. Mississauga, Brampton, Vaughan, Markham and the rest of the GTA pay the provincial tax only.
First-time homebuyer refunds
First-time buyers can get back up to $4,000 of the Ontario tax. In Toronto, they can also get back up to $4,475 of the municipal tax. Together that is up to $8,475. In practice:
- Outside Toronto, a first-time buyer pays no land transfer tax on a home up to about $368,000.
- In Toronto, a first-time buyer pays no municipal tax on a home up to $400,000.
- Above those prices, you pay the tax less the full refund.
To qualify, you must be at least 18, be a Canadian citizen or permanent resident, live in the home within nine months, and never have owned a home anywhere in the world. If your spouse owned a home while you were together, neither of you qualifies.
If you buy with someone who is not a first-time buyer, the refund is cut to your share. Two buyers on title 50/50, with only one of them first-time, get half the refund.
When you pay it, and why it matters for your mortgage
Land transfer tax is due on closing day. Your real estate lawyer collects it from you and pays it when the sale is registered. It cannot be added to your mortgage, so it has to come out of your savings along with your down payment.
Lenders check for this. Most want to see that you have about 1.5% of the price set aside for closing costs on top of your down payment. Land transfer tax is usually the biggest part of that. If you come up short, it can hold up your mortgage approval.
Not sure how much you can borrow once closing costs are covered? Get a free mortgage quote and a broker will walk you through it.