How Much Are Land Transfer Taxes in Toronto?

Toronto buyers pay both Ontario and Toronto land transfer taxes, effectively doubling the cost; however, first-time buyer rebates can help offset this expense.

When you buy a home in Toronto, land transfer taxes (LTT) are one of the most significant closing costs. Unlike mortgage payments, these taxes must be paid in cash at closing, so planning is essential.

What Are The Ontario Land Transfer Tax Rates?

Ontario charges a land transfer tax on a sliding scale based on purchase price.

• 0.5% on the first $55,000
• 1.0% on $55,000 to $250,000
• 1.5% on $250,000 to $400,000
• 2.0% on $400,000+ (for one- or two-family residences)

What Are the Toronto Land Transfer Tax Rates?

Toronto imposes a municipal land transfer tax in addition to Ontario’s, using the same sliding scale.

• 0.5% on the first $55,000
• 1.0% on $55,000 to $400,000
• 2.0% on $400,000+

This means Toronto buyers pay both provincial and municipal LTT, making the city unique in North America.

Do First-Time Buyers Get Land Transfer Tax Rebates?

Yes— first-time buyers may qualify for rebates of up to $4,000 provincially and $4,475 municipally.

To qualify, you must never have owned a home anywhere in the world and must intend to occupy the property as your principal residence. These rebates can make a big difference for first-time buyers in offsetting closing costs.

How Do I Calculate My Land Transfer Taxes?

You can estimate using online calculators or consult your real estate lawyer for precise numbers.

Because the tax scales are tiered, the exact amount depends on your purchase price. For example, buying a $1M Toronto home means paying both Ontario and Toronto LTT, minus any eligible rebates.

The Fox Marin Real Estate Team assists clients in planning for land transfer taxes as part of their overall purchasing strategy. Understanding these costs upfront ensures there are no surprises at closing.

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