Land Transfer Tax

Land transfer tax rates in Ontario1

The Ontario land transfer tax (LTT) is a marginal tax, and each portion of your home’s value is taxed at a unique rate. These tax rates are as follows:

Purchase price of home

Marginal tax rate

First $55,000

0.5%

$55,000.01 to $250,000.00

1.0%

$250,000.01 to $400,000.00

1.5%

$400,000.01 to $2,000,000.00

2.0%

Over $2,000,000

2.5%

Example Ontario land transfer tax calculation2

Let’s assume that you are purchasing a house for $300,000:

Ontario land transfer tax calculation:

• $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 )
  × 1.0% marginal tax rate
  = $1,950 land transfer tax
  
  

• ( $300,000 upper marginal tax bracket - $250,000 lower marginal tax bracket )
  × 1.5% marginal tax rate
  = $750 land transfer tax
  
  

• $275 + $1,950 + $750
  = $2,975 total Ontario land transfer tax

• Toronto land transfer tax

• Property sales in the Greater Toronto Area are also subject to the City of Toronto's municipal land transfer tax in addition to the provincial land transfer tax. The following table outlines the current tax rates:

• Purchase price of home

• Marginal tax rate

• First $55,000

• 0.5%

• $55,000.01 to $250,000.00

• 1.0%

• $250,000.01 to $400,000.00

• 1.5%

• $400,000.01 to $2,000,000.00

• 2.0%

• Over $2,000,000

• 2.5%

First-time home buyer eligibility in Ontario

• You must be a Canadian citizen or permanent resident of Canada.

• You must be 18 years or older.

• You must occupy the home within nine months of purchase.

• You cannot have owned a home or interest in a home anywhere in the world.

• Your spouse cannot have owned a home while being your spouse (but may be a previous homeowner).

• If the home is newly constructed, it must be eligible for a home warranty.

• Home buyers must apply for a refund within 18 months of purchase.

Application

Taxpayers can claim an immediate refund when registering the land transfer papers and paying their taxes. Tax rebate application forms are available online for home buyers registering electronically or on paper at government offices.

If the rebate is not claimed at the time of registration, the full tax is paid and a refund claim can be made to the Ministry of Finance within 18 months. Information required for the application include:

• A completed Ontario Land Transfer Tax Refund Affidavit for First Time Purchasers of Eligible Homes

• A copy of the registered land transfer deed

• A copy of the agreement of purchase and sale

• A copy of a document that provides proof of residence, such as a driver’s license, telephone/cable bills, etc.

Ontario non-resident speculation tax

If you are a non-resident of Ontario, you will also be charged a 15% speculation tax on all property purchases within the Greater Golden Horseshoe Region (GGH). The GGH includes the Greater Toronto Area, stretching to Peterborough and Northumberland in the east, Wellington and Branford in the west, and extending to the Canadian-American border at Niagara in the south.

 This tax was introduced in 2017 to reduce speculative investing by foreign actors inflating the market.

 *All information on this site is proximate and subject to change, please consult your legal representative for more and most up-to-date information.