Land Transfer Tax Ontario & Toronto: How Much & Who Pays

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Buying a home is an exciting venture, but it’s also one of the largest purchases many make in their lifetime. While many first time and seasoned home buyers know to crunch the numbers, the one number that can sometimes stand out is the Land Transfer Tax. It’s important to understand this number so that you can budget for it, and avoid any possible sticker shock.

What is the Ontario Land Transfer Tax

The Ontario Land Transfer Tax is a tax which buyers of houses and condos in Ontario pay when they purchase a property. The seller does not pay this tax, and all buyers are responsible for paying this tax when they take possession of a property. This number varies depending on the property, but your realtor and real estate lawyer can help you with what to expect before you put an offer in on the home so you can budget accordingly. It’s important to note that the amount is due on closing.  

What is the Toronto Land Transfer Tax

In addition to Ontario Land Transfer Tax, buyers purchasing a home in Toronto must also pay the Toronto Land Transfer Tax, also called the Municipal Land Transfer Tax (MLTT), on top of the Ontario Land Transfer Tax. This tax is applicable to homes east of Highway 427, south of Steeles Ave, west of Scarborough Pickering town line, and north of the lake.

How Much is Land Transfer Tax in Toronto & Ontario

In order to get an estimate on the cost of your land transfer tax, take the total amount of the home value using the property’s purchase and calculate the tax amount based on a percentage.

Here’s a guide to help you:

Ontario land transfer tax rates:

Purchase price of home with % land title transfer fees:

  • Up to and including $55,000 0.5%

  • $55,000.01 to $250,000.00 1.0%

  • $250,000.01 to $368,333 1.5%

  • $368,334 to $400,000.00 1.5%

  • $400,000.00 to $2,000,000.00 2.0%

  • Over $2,000,000.00 2.5%

Toronto land transfer tax rates:

Purchase price of home with % land title transfer fees:

  • Up to and including $55,000 0.5%

  • $55,000.01 to $250,000.00 1.0%

  • $250,000.01 up to and including $400,000.00 1.5%

  • $400,000.01 up to and including $2,000,000.00 2.0%

  • Over $2,000,000 2.5%

First Time Home Buyer Land Transfer Tax

First time home buyers do need to pay land transfer tax in Ontario and Toronto, but are eligible for a rebate.

Ontario First Time Home Buyer Land Transfer Tax Rebate

Luckily, first time home buyers are eligible for a tax refund of the Ontario land transfer tax, up to a maximum of $4,000. This will cover full tax for any homes purchased up to $368,333 and if your home purchase price is above that, you will still get the $4,000 rebate but will cover the rest of the land transfer amount. There are some stipulations, but many first time buyers do qualify for this rebate. Talk to your realtor if you’re not sure.

Land Transfer Tax Exemptions

You may also be exempt from paying land transfer tax on certain transfers of land, such as transfer between spouses, transfers of farmed land between family members, transfers from an individual to a family business corporation, or transfer of a life lease in a non-profit organization situation. Your realtor and your real estate lawyer can help you navigate these instances.

Final Words on Toronto & Ontario Land Transfer Taxes

If you have any questions about your land transfer tax on a potential new home, talk to your realtor today. We are here to help guide you through the entire process, and help you understand everything that goes into buying your new home.

For more information about the provincial land transfer tax, please visit: https://www.fin.gov.on.ca/en/tax/ltt/


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