Common questions
Ontario land transfer tax
Land transfer tax is one of the largest closing costs buyers face, and it catches people out because it's due in cash on closing day. Here's what it is and how it's worked out.
Work out your land transfer tax
Ontario land transfer tax
| Portion of price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 – $250,000 | 1% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2% |
| Over $2,000,000 | 2.5% |
Applies everywhere in Ontario — including Mississauga, Oakville, Burlington and Brampton.
Toronto municipal tax
| Portion of price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 – $250,000 | 1% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2% |
| $2,000,000 – $3,000,000 | 2.5% |
| $3,000,000 – $4,000,000 | 3.5% |
| $4,000,000 – $5,000,000 | 4.5% |
| $5,000,000 – $10,000,000 | 5.5% |
| $10,000,000 – $20,000,000 | 6.5% |
| Over $20,000,000 | 7.5% |
Only inside the City of Toronto. Buying in Mississauga or Oakville? You pay the provincial tax only.
First-time buyer rebates: up to $4,000provincially and $4,475 in Toronto. Rates verified 1 August 2026.This is an estimate for planning only, not tax or legal advice — confirm the exact amount with your real estate lawyer before closing.
- What is land transfer tax?
A one-time provincial tax you pay when a property changes hands in Ontario, calculated on the purchase price and due at closing in cash. It cannot be added to the mortgage. If the property is inside the City of Toronto you pay a second, municipal land transfer tax on top of the provincial one, which roughly doubles the bill.
Read the full guide: Understanding Land Transfer Tax in Ontario →- Who pays it?
The buyer, on closing day, through their lawyer. It is not something a seller can be asked to cover, and it is separate from legal fees, title insurance and adjustments.
- How is it calculated?
In brackets, each portion of the price taxed at its own rate — 0.5% on the first $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000, and 2.5% above that. Toronto's municipal tax uses the same first four bands and adds higher ones above $3,000,000. The calculator above does the arithmetic for both.
- Are there rebates?
Yes, for first-time buyers: up to $4,000 off the Ontario tax, and up to a further $4,475 off Toronto's if the property is in the city. You must be 18 or older, never have owned a home anywhere in the world, and occupy the home as your principal residence within nine months. Your lawyer claims it at closing.
- How much is land transfer tax on a typical Mississauga or Oakville home?
On a $900,000 purchase you'd pay $14,475 in Ontario land transfer tax. On $1,100,000 it's $18,475. Neither figure includes the Toronto municipal tax, because that only applies inside the City of Toronto — buying in Mississauga, Oakville, Burlington or Brampton means you pay the provincial tax only. Use the calculator above for your own number.
- When exactly do I have to pay it?
On closing day. Your lawyer collects it along with the balance of the purchase price and remits it when the transfer is registered. It is not billed later and it is not spread out, which is why it needs to be in your closing budget from the start.
- Can I add land transfer tax to my mortgage?
No. Land transfer tax is a closing cost, and closing costs cannot be financed into a standard insured mortgage — they have to be paid in cash on closing. This is the single most common budgeting mistake we see with first-time buyers. Plan for roughly 1.5% to 2% of the purchase price in total closing costs, of which land transfer tax is usually the largest part.
Read the full guide: Understanding Your Closing Costs →- What if only one of us is a first-time buyer?
You can still claim a portion. If you're buying with a spouse who has owned a home before, you may claim the rebate in proportion to your own interest in the property — so a 50/50 purchase would generally allow half the maximum rebate. Your lawyer will confirm the exact entitlement based on your situation.
- Do I pay land transfer tax on a new build?
Yes. Land transfer tax applies to new construction and pre-construction purchases just as it does to resale, and it's calculated on the purchase price. With pre-construction you pay it on final closing, not on signing — which can be years later, so budget for it well in advance.
- Is it different if I'm not a Canadian citizen or permanent resident?
It can be significantly different. Ontario applies a Non-Resident Speculation Tax on top of the regular land transfer tax for certain foreign buyers, and it applies across the whole province. The rate is substantial, so if this may apply to you, get advice from a real estate lawyer before you make an offer rather than after.