Land Transfer Tax in Ontario: Rates, Toronto and Examples

Who pays land transfer tax when you buy or sell in Ontario

The buyer pays. Ontario's calculation page describes the tax as payable by the transferee on the value of the consideration, and the seller is not part of the calculation (Ontario, calculating land transfer tax). The page does not say in so many words that sellers pay nothing, but in substance that is how the tax works.

That shapes how you read your numbers on both sides of a downsizing move. On the sale, the costs are the commission with tax added, legal fees, any mortgage payout and closing adjustments, which are covered in the net proceeds guide. On the purchase, land transfer tax is a cost that arrives on closing day, usually through your lawyer, and it is paid in addition to the price. Ask your lawyer and lender how it is to be paid, and plan for it as a separate cost.

The tax is figured on the value of the consideration. Ontario states that this includes mortgage or debt assumed, not only the cash that changes hands (Ontario, land transfer tax). For a typical resale, the consideration is the purchase price.

Ontario land transfer tax rates for 2026

The provincial tax is graduated. Each rate applies only to the slice of the price inside that bracket. These are the residential rates in force since January 1, 2017, and they were still shown as current on Ontario's page when this guide was written in October 2026.

The top bracket applies only to land with one or two single family residences. Anything else, such as a condominium unit, stops at the 2.0% bracket under the table above.

A shortcut helps with the arithmetic. The first three brackets together add up to $4,475: $275 on the first $55,000, $1,950 on the next $195,000 and $2,250 on the next $150,000. From there, every dollar between $400,000 and $2,000,000 costs two cents.

Toronto municipal land transfer tax

Buying in the City of Toronto adds a municipal land transfer tax. For homes of one or two single-family residences, the City of Toronto published a graduated schedule effective April 1, 2026, after Council passed the higher rates for expensive homes on December 17, 2025 (City of Toronto, MLTT rates and fees).

For residential property that is not one or two single-family residences, Toronto lists 0.5% to $55,000, 1.0% to $250,000, 1.5% to $400,000 and 2.0% above $400,000. Up to $2,000,000 the Toronto brackets match the provincial ones. That means for most downsizing purchases in the city, the municipal bill equals the provincial bill, and the two together are twice the provincial amount.

Rates can change by Council decision or provincial budget. No change to the provincial brackets was found in the sources read for this guide, but confirm the current table with your lawyer before you make an offer. If you are considering a Toronto purchase, see the Toronto page.

Land transfer tax examples at $600,000, $900,000 and $1,500,000

These examples use exact dollars with no rounding, because no rounding rule was confirmed on the official pages. They use the purchase price as the value of the consideration.

Here is how the $600,000 figure is built. The first three brackets give $4,475. Then 2.0% applies to the $200,000 above $400,000, which is $4,000. The provincial tax is $8,475. At $900,000, 2.0% of $500,000 is $10,000, so the tax is $14,475. At $1,500,000, 2.0% of $1,100,000 is $22,000, so the tax is $26,475.

Outside Toronto, the provincial figure is the whole bill. Inside Toronto, double it for these three prices. Compare that with the same purchase in a neighbouring municipality, and the tax alone can differ by many thousands of dollars. Land transfer tax is only one part of the comparison, since property taxes, condo fees and the price itself differ as well. The where to downsize overview shows the regions side by side.

First-time buyer refunds, as context

Ontario refunds up to $4,000 of the provincial tax to eligible first-time buyers, which effectively removes the tax on the first $368,000. To qualify, a buyer must be at least 18, occupy the home as a principal residence within nine months, have never owned a home anywhere in the world, and be a citizen or permanent resident. A spouse must not have owned a home while married to the buyer. If only some co-buyers qualify, the refund is shared proportionally (Ontario, first-time homebuyer refunds).

Toronto has a matching rebate of up to $4,475 under the same eligibility tests (City of Toronto, MLTT rebates). Requests must be made within 18 months of the transfer.

For someone downsizing from a home they have owned for years, these refunds usually do not apply. They are included here so you can read the official pages with the right expectations, and in case a family member who is buying with you has never owned. Using the $600,000 case as an illustration only: the provincial $8,475 less the $4,000 maximum refund is $4,475, and Toronto's $8,475 less its $4,475 maximum rebate is $4,000.

Other buyer-side items for a downsizer

If you are buying a newly built home from a builder, other rules can matter more than land transfer tax. Ontario's Enhanced New Housing Rebate applies to homes bought from a builder between April 1, 2026 and March 31, 2027, with a full rebate of the 8% provincial portion of HST up to $1,000,000 in price, a flat $80,000 from $1,000,000 to $1,500,000 and a partial rebate to $1,850,000 (CRA). That is a new-build question, and a lawyer or the builder's sales office can explain how it interacts with your purchase.

The Non-Resident Speculation Tax is 25% and applies to buyers who are not citizens or permanent residents. If one co-buyer is foreign, the tax applies to the full price (Ontario, NRST). It matters if you plan to buy with someone who lives abroad.

How to estimate the tax before you shop

Estimating takes four steps. First, take your target price. Second, find the bracket it falls in. Third, add the fixed amount for the brackets below it: $4,475 for any price over $400,000. Fourth, add the percentage of the portion above the bracket floor. For a $750,000 purchase, for example, the portion above $400,000 is $350,000, and 2.0% of that is $7,000, so the provincial tax is $11,475 (exact dollars, no rounding). In Toronto the municipal tax is the same figure at that price, for a combined $22,950.

Run the estimate at the top of your price range, not the middle. If you are comparing a condominium with a house, remember that the tax follows the price and not the type of home, apart from the top Toronto and provincial brackets above $2,000,000 that depend on the kind of property. You can read more about the trade-offs in the condo, townhouse or house guide.

Two further cautions. The consideration in an agreement can include items beyond the headline price, so ask your lawyer to confirm what counts. And tax tables change: Toronto's schedule changed on April 1, 2026, so a figure from an older article may be wrong. Use the current pages linked above, and check the date.

Keep the written estimate with your other closing costs. When a seller counters your offer, rerun the figure, because even a small price change moves the tax by two cents on each dollar in the 2.0% bracket. That is a useful check when you are choosing between two homes at slightly different prices.

Planning the cash for closing day

Land transfer tax is due on closing, and your lawyer collects it with the funds for the purchase. If your sale closes on the same day, the money may come from your sale proceeds. If it closes later, you need another source for the tax. The buy first or sell first guide covers the timing problem, and the net proceeds calculator helps you see how much will be available.

Before an offer, ask your lawyer for a land transfer tax figure for the price you have in mind, and add it to your list of closing costs. If you are buying a condominium, read the condo buying guide for the other closing items. The costs and money overview places this tax among the other expenses of a move.

This guide is general information and not tax or legal advice. When you are ready to talk about a purchase, contact us to an agent. Messages go to agents on the operating team at eXp Realty.