Ontario land transfer tax (LTT) is calculated on a graduated scale: 0.5% on the first $55,000 of value, 1.0% on amounts from $55,001 to $250,000, 1.5% on amounts from $250,001 to $400,000, 2.0% on amounts from $400,001 to $2,000,000, and 2.5% on amounts above $2,000,000. First-time home buyers receive a refund of up to $4,000 of the provincial LTT. Toronto buyers pay an additional municipal land transfer tax (MLTT) on top of the provincial amount.
Ontario LTT brackets
| Portion of property value | Provincial LTT rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Above $2,000,000 (residential, one or two single family residences) | 2.5% |
The 2.5% top bracket applies only to residential properties containing one or two single family residences. Commercial property and multi-residential property above $2,000,000 stay at 2.0% on the portion above $400,000.
Worked example: $700,000 home in Ontario (outside Toronto)
A $700,000 purchase produces the following provincial LTT:
- 0.5% on the first $55,000: $275
- 1.0% on $55,001 to $250,000 ($195,000): $1,950
- 1.5% on $250,001 to $400,000 ($150,000): $2,250
- 2.0% on $400,001 to $700,000 ($300,000): $6,000
- Total provincial LTT: $10,475
A first-time home buyer receives the $4,000 maximum refund, reducing net provincial LTT to $6,475. Ontario also offers a refund up to $2,000 for buyers of newly constructed energy-efficient homes meeting Ministry of Energy standards.
Ontario First-Time Home Buyer Refund
The Ontario First-Time Home Buyer LTT refund is up to $4,000, which fully covers the LTT on a home priced up to $368,333. Above that price the refund is capped at $4,000 and the buyer pays the remainder. Eligibility requires that the purchaser is at least 18 years old, has not owned a home anywhere in the world (including a beneficial interest in a home), and has not had a spouse who owned a home while they were spouses. The home must be occupied as a principal residence within nine months of purchase and the application filed within 18 months.
Toronto Municipal Land Transfer Tax
Properties within the City of Toronto pay an additional municipal LTT (MLTT) on top of the Ontario provincial LTT. The Toronto MLTT mirrors the provincial brackets but adds layers above $2,000,000:
| Portion of property value | Toronto MLTT rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| $2,000,001 to $3,000,000 | 2.5% |
| $3,000,001 to $4,000,000 | 3.5% |
| $4,000,001 to $5,000,000 | 4.5% |
| $5,000,001 to $10,000,000 | 5.5% |
| $10,000,001 to $20,000,000 | 6.5% |
| Above $20,000,000 | 7.5% |
Toronto first-time buyers can also receive an MLTT refund of up to $4,475 in addition to the provincial $4,000 refund, for a maximum combined first-time buyer refund of $8,475.
Non-Resident Speculation Tax (NRST)
Foreign nationals, foreign corporations, and taxable trustees buying residential property anywhere in Ontario pay an additional 25% Non-Resident Speculation Tax. The NRST applies to single-family homes, semi-detached, townhouses, and condominium units containing one to six single family residences. The NRST is in addition to provincial and any municipal LTT.
When and how to pay LTT
Land transfer tax is due at closing when the transfer is registered. The buyer’s lawyer or notary calculates the tax, collects it from closing funds, and remits it through the Teraview electronic land registration system. The transfer cannot be registered without the LTT being paid. Refund applications for first-time buyers are typically submitted at the time of registration so the refund is netted against the LTT owing.
Frequently asked questions
- How is Ontario LTT calculated?
- Graduated brackets from 0.5% on the first $55,000 up to 2.5% on residential value above $2,000,000.
- What is the maximum first-time home buyer LTT refund?
- $4,000 in Ontario, which fully covers provincial LTT on a home priced up to $368,333.
- Who qualifies for the Ontario first-time buyer refund?
- A purchaser at least 18 who has never owned a home anywhere in the world, and has not had a spouse who owned a home while they were spouses.
- What is the Toronto MLTT?
- An additional municipal land transfer tax mirroring Ontario's brackets up to $2 million, then escalating to 7.5% above $20 million.
- What is the Ontario Non-Resident Speculation Tax?
- A 25% tax on residential property purchases by foreign nationals or foreign corporations, applied on top of provincial and any municipal LTT.
- When is LTT paid?
- At closing, when the transfer is registered through the Teraview electronic land registration system. Collected by the buyer's lawyer.
- Is HST charged on LTT?
- No. Resale residential property is HST-exempt. New construction has HST on the home but not on LTT itself.