Last updated: May 4, 2022
What this tool is all about:
This tool lets you get an estimate of what your land transfer tax will be when you purchase a Ontario property.
If you are a first-time home buyer in Ontario, you might be able to claim a land transfer tax rebate. If you live in Toronto, you might be able to claim a land transfer tax rebate for both your provincial and municipal land transfer taxes.
If you are a first-time buyer in Ontario, you can get a rebate of up to $4,000.00 for the land transfer tax on closing. This rebate can cover the full tax for homes valued up to $368,000. For homes valued above $368,000, you will need to pay the remaining tax beyond the $4,000 rebate. If you are a first-time buyer in Toronto, you can get a rebate of up to $4,475.00 for the municipal land transfer tax (MLTT) on closing.
Your eligibility for this first-time home buyer land transfer tax refund is based on the following:
This rebate does not apply to commercial, industrial or multi-residential properties.
If you are unsure if you are eligible for the first-time home buyer land transfer tax rebate, talk to your mortgage advisor to learn more.
No, not all provinces in Canada have land transfer tax. The provinces that have land transfer tax are:
Some areas in Canada will charge both provincial and municipal land transfer tax.
All other remaining provinces and territories charge registration fees based on the value of the property being bought or transferred. These fees are usually much lower compared to typical Canadian land transfer tax rates.
|Purchase Price of Property||Marginal Tax Rate|
|Up to and including $55,000||0.5%|
|$55,000.01 to $250,000||1%|
|$250,000.01 to $400,000.00||1.5%|
|$400,000.01 to $2,000,000||2%|
It’s a rule of thumb to budget at least 2-3% of the purchase price of your property to go towards closing costs (or use our closing cost calculator to get a more exact figure). Land transfer tax cannot be added into your mortgage and must be paid as soon as you take possession of the property from the seller on closing day.
In the process of purchasing a home? Check out Perch’s Guide to Buying a Home at any step of your home buying process to get access to free tools and resources that will help you before and after your closing date. You can also sign up today for a Perch profile to connect with a realtor or mortgage advisor today.