When buying a home in Ontario, one of the largest closing costs you'll face is the land transfer tax (LTT). If you're buying in Toronto, you'll pay a second municipal land transfer tax on top of the provincial one. Here's everything you need to know.
Ontario Provincial Land Transfer Tax Brackets
| Purchase Price Range | Tax Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Toronto Municipal Land Transfer Tax
Toronto buyers pay an additional municipal LTT with the same bracket structure as the provincial tax. This effectively doubles the land transfer tax for properties within the City of Toronto.
Examples
$800,000 Home Outside Toronto
Ontario LTT only: $12,475
$800,000 Home in Toronto
Ontario LTT: $12,475 + Toronto MLTT: $12,475 = $24,950
First-Time Home Buyer Rebates
Ontario rebate: Up to $4,000 (covers LTT on homes up to $368,000)
Toronto rebate: Up to $4,475 (covers MLTT on homes up to $400,000)
A first-time buyer purchasing an $800,000 home in Toronto would save $8,475 through combined rebates, paying $16,475 instead of $24,950.
Budget for This Cost
Land transfer tax is due on closing day and cannot be added to your mortgage. Make sure your savings cover not just the down payment but also LTT, legal fees, home inspection, title insurance, and moving costs.
Use our Land Transfer Tax Calculator to calculate your exact amount, or estimate your full mortgage payments.