When you buy a home in Ontario, land transfer tax is one of the biggest closing costs you need to plan for. The amount you pay depends on where the property is located, the purchase price, and whether you qualify for a rebate. Toronto buyers now need to pay an extra municipal tax, and high-value homes are subject to 2026 rate changes.
How Much Is Land Transfer Tax in Ontario in 2026?
So, how much is land transfer tax in Ontario? It's calculated progressively, based on your property's purchase price. Provincial rates generally range from 0.5% to 2.5% for qualifying residential properties. If you buy in Toronto, you'll also pay a Municipal Land Transfer Tax (MLTT) on top of the provincial amount, which increases the total cost.
Eligible first-time homebuyers may qualify for a rebate that reduces or removes the provincial tax. Keep in mind that LTT Ontario is a one-time cost paid at closing. This makes land transfer tax in Ontario, Canada, an important line item in your budget.
Toronto's New Land Transfer Tax Rates: Important 2026 Update
Toronto recently revised its Municipal Land Transfer Tax for high-value residential properties, effective April 1, 2026. These apply to qualifying residential properties priced above $3 million.
Because these municipal amounts are charged in addition to Ontario's provincial LTT, Toronto buyers of luxury homes now face noticeably higher costs.
New Toronto MLTT Rates
Property Value Portion | MLTT Rate |
$3M–$4M | 4.40% |
$4M–$5M | 5.45% |
$5M–$10M | 6.50% |
$10M–$20M | 7.55% |
Over $20M | 8.60% |
Ontario Land Transfer Tax Rates and How They Work
The property transfer tax system in Ontario has a progressive, or marginal, structure. Therefore, only the portion of your purchase price that falls within each bracket is subject to the highest rate. Knowing Ontario's land transfer fees will help you calculate total expenses before submitting an offer.
Current Ontario Provincial LTT Rates
Property Value Portion | Provincial LTT Rate |
First $55,000 | 0.5% |
$55,000–$250,000 | 1.0% |
$250,000–$400,000 | 1.5% |
$400,000–$2 million | 2.0% |
Over $2 million* | 2.5% |
*For qualifying one- or two-single-family residential properties.
How to Calculate Land Transfer Tax in Ontario
How do I figure out land transfer tax? Let's walk through an example using an $800,000 Ontario home.
You apply each rate to its corresponding bracket:
- 0.5% on first $55,000 = $275
- 1% on the next $195,000 = $1,950.
- 1.5% on the next $150,000 = $2,250.
- 2% of the remaining $400,000 = $8,000
Add those together, and your total provincial LTT will be $12,475. An Ontario land transfer tax calculator will do this math for you in seconds to give you a quick estimate before you buy. If you want a quicker starting point, using an LTT calculator in Ontario is a good first step
Toronto vs Other Ontario Cities: Do You Pay Additional Land Transfer Tax?
Provincial LTT applies everywhere in Ontario. Buyers there generally pay both the provincial LTT and the Toronto MLTT, which is why a land transfer tax calculator for Toronto is so useful for city buyers.
Buyers in Mississauga, Markham, Brampton, Vaughan, Hamilton, and Ottawa generally pay only the provincial LTT. These municipalities do not currently charge a separate municipal land transfer tax. Before making an offer, you can also explore Serik Realty's homes for sale across Ontario to compare properties and estimate your potential closing costs.
First-Time Home Buyer Land Transfer Tax Rebate in Ontario
Eligible first-time home buyers may receive up to $4,000 through the Land Transfer Tax Rebate Ontario program. This rebate can fully eliminate the provincial LTT for an eligible home valued up to $368,000.
If you meet the eligibility rules, you can still receive the full $4,000 rebate, but you will pay the difference. If you are using a first-time home buyer property transfer tax calculator, do include this rebate. Toronto has its own municipal rebate which can save you even more if you qualify as a city buyer, so check your eligibility early.
Who Pays Land Transfer Tax in Ontario?
The answer to who pays land transfer tax is simple: the buyer generally pays it. The tax is due during the closing and property registration process, and in most cases, your real estate lawyer handles the calculation and payment as part of closing.
Do You Pay Land Transfer Tax When You Sell?
Do you pay land transfer tax when you sell? Generally, no. Sellers do not owe land transfer tax simply for selling their property. The purchaser pays this cost instead.
Commercial Properties: Additional Issues for Foreign Buyers
Some foreign buyers may be required to pay Ontario’s 25% Non-Resident Speculation Tax (NRST) on top of the normal LTT. Commercial land transfer tax Ontario transactions may also be subject to the tax, but calculations may differ. If you’re dealing with these more complex deals, always get professional legal or tax advice before you sign.
Final Thoughts: Plan for Land Transfer Tax Before You Buy
The final amount depends on property value, location, and your eligibility for rebates. Toronto buyers should plan for both provincial and municipal taxes, while first-time buyers should check available rebates before closing. In short, review these costs early to avoid surprises later.
Planning to buy a home in Ontario? Work with the Serik Realty Team to better understand your purchase costs and make knowledgeable decisions before submitting an offer. You may also be eligible for Serik Realty's up to 1.5% cashback program when buying a home, which can help reduce some of the financial pressure associated with your purchase.
