Ontario Land Transfer Tax: A Complete Guide for 2026

What Is Land Transfer Tax?

Ontario Land Transfer Tax (LTT) is a provincial tax paid by the buyer when a property changes hands. It's calculated as a percentage of the purchase price on a sliding scale. Toronto buyers also pay a second, municipal Land Transfer Tax — effectively doubling the bill.

Ontario LTT Rate Table

Purchase Price	Tax Rate
First $55,000	0.5%
$55,001 – $250,000	1.0%
$250,001 – $400,000	1.5%
$400,001 – $2,000,000	2.0%
Over $2,000,000	2.5%

Example: $800,000 Purchase in Ontario (Outside Toronto)

• First $55,000 × 0.5% = $275
• $55,001–$250,000 × 1.0% = $1,950
• $250,001–$400,000 × 1.5% = $2,250
• $400,001–$800,000 × 2.0% = $8,000
• Total: $12,475

Toronto Municipal Land Transfer Tax

Toronto buyers pay an identical second LTT to the City of Toronto. On an $800,000 purchase in Toronto, total LTT = $24,950 (Ontario + municipal).

First-Time Buyer Rebate

Ontario first-time buyers receive a rebate of up to $4,000 on the provincial LTT. Toronto first-time buyers get an additional rebate of up to $4,475 on the municipal LTT.

Qualification: you (and your co-purchaser, if any) must never have owned a home anywhere in the world, and the property must become your principal residence.

When Is LTT Paid?

Land transfer tax is paid on closing day, through your real estate lawyer. It must be paid in full — you cannot finance it. Budget for it as a cash requirement alongside your down payment.

Other Closing Costs to Budget

• Legal fees: $1,500–$2,500
• Title insurance: $300–$500
• Home inspection: $400–$600
• Adjustments (prepaid taxes, utilities): varies
• CMHC PST (if insured): 8% of CMHC premium (Ontario)

Total closing costs typically run 1.5%–4% of purchase price depending on location and mortgage type. Use our LTT calculator for an exact figure.