Ontario land transfer tax calculator

Q: Ontario Land Transfer Tax Chart

.tg {border-collapse:collapse;border-spacing:0;} .tg td{border-color:black;border-style:solid;border-width:1px;font-family:Arial, sans-serif;font-size:14px; overflow:hidden;padding:10px 5px;word-break:normal;} .tg th{border-color:black;border-style:solid;border-width:1px;font-family:Arial, sans-serif;font-size:14px; font-weight:normal;overflow:hidden;padding:10px 5px;word-break:normal;} .tg .tg-fymr{border-color:inherit;font-weight:bold;text-align:left;vertical-align:top} .tg .tg-obm4{border-color:#12453b;font-weight:bold;text-align:left;vertical-align:top} .tg .tg-0pky{border-color:inherit;text-align:left;vertical-align:top} .tg .tg-0lax{text-align:left;vertical-align:top} 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% $2,000,000+ 2.5% It’s important to note that each portion of your home’s value is taxed at a unique rate. See below for an example Ontario land transfer tax formula: $55,000 first marginal tax bracket × 0.50% marginal tax rate = $275 land transfer tax ($250,000 upper marginal tax bracket - $55,000 lower marginal tax bracket = $195,000) × 1.0% marginal tax rate = $1,950 land transfer tax ($400,000 upper marginal tax bracket - $250,000 lower marginal tax bracket - $150,000) × 1.5% marginal tax rate = $2,250 land transfer tax ($500,000 property value - $400,000 lower marginal tax bracket = $100,000) × 2.0% marginal tax rate = $2,000 land transfer tax $275 + $1,950 + $2,250 + $2,000 Ontario land transfer tax = $6,475 These calculations can sometimes be confusing, which is why we have created the Ontario land transfer tax calculator. Simply input your details and you'll instantly get an estimate.

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.

Disclaimer: Perch does not guarantee the accuracy of these results and should be treated as an estimate. Exact Ontario land transfer tax will be provided to you by your solicitor prior to your closing date. Please refer to our Terms of Use for more information.

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What is the Ontario land transfer tax?

Probably one of the largest closing costs for buyers, the Ontario land transfer tax is a one time fee paid to your provincial government when a property or home is transferred from the seller to you. The Ontario land transfer tax is applied to every home or property once purchased and will depend on the value of the property.

In addition to the provincial land transfer tax, if you are buying a home in Toronto, you will also have to pay a municipal land transfer tax to the city. The boundaries that are defined as Toronto is Steeles Avenue (North), Etobicoke (West), Scarborough (East) and Lake Ontario (South).

Who pays the land transfer tax?

Anyone who purchases a property must pay a land transfer tax to the province in which they bought the property and it must be paid when the transaction closes. Depending on your location, residents might have to pay both provincial and municipal land transfer tax. In Toronto, Ontario, residents will have to pay both provincial and municipal land transfer tax.

How can I avoid the Ontario land transfer tax?

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:

You must be a Canadian citizen or permanent resident of Canada
You must be older than 18 years of age
You must occupy the home within nine months of purchase
You cannot have owned a home before in Canada or anywhere else in the world
Your spouse cannot have owned a home during the course of the marriage
Newly constructed homes must be eligible for home warranty
You must apply for the rebate within 18 months after purchasing the property

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.

Are there other Ontario land transfer tax exemptions?

When buying real estate in Ontario, there are certain circumstances where an exemption to the Ontario land transfer tax might be granted. This can include:

Transfer of land between spouses
Transfer of land from a person to a family business
Transfer of farming property between family members

Do all provinces in Canada have land transfer tax?

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.

How do I calculate the Ontario land transfer tax?

Ontario land transfer tax is typically based on the amount paid for the property, in addition to the amount remaining on any mortgage or debt assumed as part of the purchase. The calculation can include the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades. Land transfer tax can also be based on the fair market value of the land in certain scenarios. For example:

the transfer of a lease with a remaining term that can exceed 50 years
the transfer of land from a corporation to one of its shareholders
the transfer of land to a corporation, if shares of the corporation are issued

Ontario Land Transfer Tax Chart

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%
$2,000,000+	2.5%

It’s important to note that each portion of your home’s value is taxed at a unique rate. See below for an example Ontario land transfer tax formula:

$55,000 first marginal tax bracket × 0.50% marginal tax rate = $275 land transfer tax

($250,000 upper marginal tax bracket – $55,000 lower marginal tax bracket = $195,000) × 1.0% marginal tax rate = $1,950 land transfer tax

($400,000 upper marginal tax bracket – $250,000 lower marginal tax bracket – $150,000) × 1.5% marginal tax rate = $2,250 land transfer tax

($500,000 property value – $400,000 lower marginal tax bracket = $100,000) × 2.0% marginal tax rate = $2,000 land transfer tax

$275 + $1,950 + $2,250 + $2,000 Ontario land transfer tax = $6,475 These calculations can sometimes be confusing, which is why we have created the Ontario land transfer tax calculator. Simply input your details and you’ll instantly get an estimate.

Can the Ontario land transfer tax be rolled into my mortgage?

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.

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