Ontario Buying Guide
Land transfer tax can be one of the largest closing costs when purchasing real estate in Ontario. The amount generally increases with the value of the consideration, and Toronto buyers can face an additional municipal land transfer tax.
Updated for 2026. Here is how Ontario land transfer tax works, how the brackets are applied and where first-time buyer refunds can reduce the amount payable.
The Short Answer
Ontario land transfer tax is generally paid when an interest in land is acquired and the transaction is registered. The tax uses graduated brackets, meaning different portions of the purchase price are taxed at different rates.
Eligible first-time homebuyers may receive an Ontario refund of up to $4,000. Buyers purchasing in Toronto may also pay Toronto’s Municipal Land Transfer Tax in addition to the provincial tax.
Ontario Land Transfer Tax Rates for 2026
For a property containing one or two single-family residences, Ontario’s current provincial land transfer tax brackets are:
| Portion of Value | Tax Rate |
|---|---|
| Up to $55,000 | 0.5% |
| Over $55,000 to $250,000 | 1.0% |
| Over $250,000 to $400,000 | 1.5% |
| Over $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
The 2.5% provincial bracket above $2 million applies to property containing one or two single-family residences. Different treatment applies to certain other property types.
View Ontario’s official land transfer tax calculation information.
How the Graduated Tax Works
A common misunderstanding is that once a purchase price enters a higher bracket, the entire purchase price is taxed at the higher rate.
That is not how the graduated calculation works. Each tax rate applies only to the portion of the value within that bracket.
Example: $750,000 Ontario Home
- First $55,000 × 0.5% = $275
- Next $195,000 × 1.0% = $1,950
- Next $150,000 × 1.5% = $2,250
- Remaining $350,000 × 2.0% = $7,000
Estimated Ontario land transfer tax: $11,475.
An eligible first-time purchaser qualifying for the maximum $4,000 Ontario refund could reduce that provincial amount to approximately $7,475.
Ontario First-Time Homebuyer Refund
Eligible first-time homebuyers can receive a refund of all or part of Ontario land transfer tax, up to a current maximum of $4,000.
Among the provincial eligibility requirements, a purchaser generally must be at least 18 and cannot previously have owned a home or an interest in a home anywhere in the world. Spousal ownership rules can also affect eligibility.
Eligibility for other federal first-time buyer programs does not necessarily mean a purchaser qualifies for Ontario’s land transfer tax refund. The definitions can differ.
Read Ontario’s official first-time homebuyer refund requirements.
What About Toronto?
Purchases within the City of Toronto can be subject to Toronto Municipal Land Transfer Tax (MLTT) in addition to Ontario land transfer tax.
That means a Toronto buyer may have two separate land transfer tax calculations at closing.
Toronto MLTT Rates in 2026
For residential property containing one or two single-family residences, Toronto’s revised high-value MLTT rates effective April 1, 2026 are:
| Portion of Value | Toronto MLTT Rate |
|---|---|
| Up to $55,000 | 0.5% |
| Over $55,000 to $250,000 | 1.0% |
| Over $250,000 to $400,000 | 1.5% |
| Over $400,000 to $2 million | 2.0% |
| Over $2 million to $3 million | 2.5% |
| Over $3 million to $4 million | 4.40% |
| Over $4 million to $5 million | 5.45% |
| Over $5 million to $10 million | 6.50% |
| Over $10 million to $20 million | 7.55% |
| Over $20 million | 8.60% |
Different MLTT treatment applies to certain other property types.
Toronto also charges an administration fee for MLTT transactions. Because municipal rates and fees can change, confirm the amount applicable on the actual closing date.
View current Toronto MLTT rates and fees.
Toronto First-Time Buyer Rebate
Qualifying first-time purchasers may also be eligible for a Toronto MLTT rebate of up to $4,475.
This is separate from Ontario’s provincial refund, so a qualifying Toronto first-time buyer may potentially benefit from both programs.
When Is Land Transfer Tax Paid?
For a typical Ontario resale purchase, land transfer tax is generally dealt with by the buyer’s lawyer as part of registration and closing.
Because it can represent a significant cash requirement, buyers should include land transfer tax in their closing-cost budget well before the closing date.
Is Land Transfer Tax Included in the Mortgage?
Land transfer tax should generally be treated as a closing cash requirement rather than assumed to be included in the mortgage advance.
Ask the lender and lawyer about the specific funds required to close the transaction.
Calculate Your Estimate
Ontario Home Intel’s calculator can estimate provincial land transfer tax, Toronto MLTT where applicable and potential first-time buyer relief.
Other Closing Costs to Remember
- Legal fees and disbursements
- Title insurance
- Property tax adjustments
- Utility or condominium adjustments where applicable
- Home inspection costs
- Appraisal costs where applicable
- Mortgage default insurance-related costs where applicable
- Moving expenses
FAQ
Ontario Land Transfer Tax Questions
Does every Ontario buyer pay the same land transfer tax rate?
No. Ontario uses graduated brackets, so the amount depends on the value of the consideration and, in some cases, the type of property.
How much is the Ontario first-time buyer refund?
The maximum provincial first-time homebuyer land transfer tax refund is currently $4,000 for qualifying purchases.
Do Toronto buyers pay Ontario land transfer tax too?
Yes. A property purchase within Toronto can be subject to Ontario land transfer tax as well as Toronto Municipal Land Transfer Tax.
Does being a first-time buyer automatically eliminate land transfer tax?
No. Eligible buyers may receive refunds or rebates up to the applicable program limits. If the tax exceeds the available refund, the remaining amount is still payable.
Continue Your Research
General information only: Land transfer tax rules, rates, rebates and eligibility can change and may depend on property type and purchaser circumstances. This guide is for general educational purposes and is not legal, tax, financial or real estate advice. Confirm the amount payable with your lawyer and the applicable government authority.