How is Ontario land transfer tax calculated?

Ontario LTT uses a marginal rate structure applied to the purchase price. The 2025 rates are: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% on the portion above $2,000,000. For a single-family residence priced above $2,000,000, an additional 0.5% applies above that threshold under the additional non-resident tax rules (where applicable).

Who pays land transfer tax in Ontario?

The purchaser pays Ontario land transfer tax. It is due at closing and is collected by the purchaser's lawyer or notary, who remits it to the Ontario government through Teraview (the provincial electronic land registration system). The seller does not pay LTT. Tax is due on the day of registration of the transfer.

Is there a first-time home buyer rebate for Ontario LTT?

Yes. First-time home buyers in Ontario can claim a rebate of up to $4,000 on Ontario LTT (Land Transfer Tax Act, s.2.1). The rebate eliminates LTT entirely on homes priced up to approximately $368,000 (where the total LTT equals $4,000). For homes above that price, the rebate reduces but does not eliminate the tax. To qualify, the purchaser must never have owned a home anywhere in the world and must occupy the home as their principal residence.

Does Ontario LTT apply to new construction homes?

Yes. Ontario LTT applies to new construction homes based on the purchase price including any upgrades that are part of the original purchase agreement. GST/HST is excluded from the LTT calculation if it is separately itemised. For assignment sales (selling a pre-construction agreement before closing), LTT may apply to the full assignment price including the original purchase price and any profit.

Are there any Ontario LTT exemptions?

Key exemptions include: transfers between spouses (as defined under the Family Law Act) are exempt; transfers to a child from a parent where no money changes hands may qualify for an exemption under O. Reg. 70/91; certain transfers involving a change of business structure (amalgamations, corporate reorganisations) may be exempt under specific regulations; farm property transfers under certain conditions; and transfers under court orders. All exemptions require the transfer to be registered and accompanied by an affidavit claiming the exemption.

How do I pay Ontario land transfer tax?

Ontario LTT is collected at closing by the purchaser's lawyer or notary and remitted to the province through Teraview. The purchaser does not pay it directly to the government; the closing funds transfer includes the LTT amount, which the lawyer pays on closing day. For electronic registrations, the tax is calculated automatically in the Teraview system.

Is Ontario LTT tax deductible?

Ontario LTT is not deductible for a principal residence. For an investment or rental property, LTT is added to the adjusted cost base (ACB) of the property as an acquisition cost, which reduces the capital gain on eventual sale. LTT cannot be deducted as a current expense against rental income in the year of purchase; it is a capital cost.

What is the Ontario LTT on a $800,000 home?

Ontario LTT on $800,000: 0.5% x $55,000 = $275; 1.0% x $195,000 = $1,950; 1.5% x $150,000 = $2,250; 2.0% x $400,000 = $8,000. Total = $12,475. A first-time home buyer would reduce this by the $4,000 rebate to $8,475.

Does Ontario LTT apply to commercial properties?

Yes. Commercial, industrial, and multi-residential properties are subject to Ontario LTT using the same rate schedule as residential properties, but they do not qualify for the first-time home buyer rebate. The additional 0.5% rate above $2,000,000 applies to all property types (residential and non-residential) without distinction.

Are non-residents of Canada subject to additional LTT in Ontario?

Non-Canadian citizens and non-permanent residents who purchase residential property in the Greater Golden Horseshoe (GGH) region are subject to the Non-Resident Speculation Tax (NRST) of 25%, which is separate from and in addition to LTT. The NRST was increased from 20% to 25% effective March 27, 2022. Certain exemptions apply, including for protected persons, nominees, and recent new permanent residents.

Ontario Land Transfer Tax Calculator

Calculate the Ontario Land Transfer Tax (LTT) on a home purchase. Uses the current 2026 bracket structure from the Ontario Ministry of Finance.

Reviewed by Canadian Money Help Editorial Updated April 24, 2026 Source Ontario Land Transfer Tax

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Ontario land transfer tax (LTT) is levied on the purchase price of all land and buildings transferred in Ontario under the Land Transfer Tax Act, R.S.O. 1990, c.L.6. The tax uses a marginal rate structure: lower rates apply to smaller portions of the price and higher rates apply to larger amounts. The purchaser pays LTT at closing.

2025 Ontario LTT Rate Table

Purchase Price Portion	Tax 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%
Over $2,000,000	2.5%

Worked Examples

Purchase Price	Ontario LTT	After FTHB Rebate
$400,000	$4,475	$475
$600,000	$8,475	$4,475
$800,000	$12,475	$8,475
$1,000,000	$16,475	$12,475
$1,500,000	$26,475	N/A (FTHB max $4,000)
$2,500,000	$55,475	N/A

First-Time Home Buyer Rebate

Ontario’s first-time home buyer (FTHB) rebate under Land Transfer Tax Act s.2.1 reduces Ontario LTT by up to $4,000. The rebate applies when:

The purchaser is a Canadian citizen or permanent resident
The purchaser has never owned an eligible home anywhere in the world
The property will be the purchaser’s principal residence
For properties with two or more eligible occupants, each purchaser may claim the rebate if they individually qualify; combined rebates are capped at $4,000 total

The rebate eliminates Ontario LTT entirely on homes priced up to approximately $368,000. Above that price, the rebate partially offsets the tax.

Toronto Double LTT

Properties within the City of Toronto (not the GTA broadly) are subject to the Toronto Municipal Land Transfer Tax (MLTT) in addition to Ontario LTT. The two taxes are calculated on the same purchase price using similar rate structures. The combined LTT payable in Toronto is approximately double that of an equivalent purchase elsewhere in Ontario. See the Toronto MLTT calculator for the municipal component.

Non-Resident Speculation Tax (NRST)

Non-Canadian citizens and non-permanent residents purchasing residential property in the Greater Golden Horseshoe (GGH) region are subject to the Non-Resident Speculation Tax of 25% on the purchase price under the Foreign Buyers Tax regulation (O. Reg. 182/17, as amended). This tax is separate from and in addition to Ontario LTT. Exemptions apply for nominees under the Ontario Immigrant Nominee Program and protected persons (refugees). The 25% rate has been in effect since March 27, 2022.

LTT as an Acquisition Cost

For a rental or investment property, Ontario LTT is added to the adjusted cost base (ACB) of the property. It is not a deductible current expense in the year of purchase. When the property is sold, a higher ACB reduces the capital gain subject to tax. For a principal residence, LTT is simply a closing cost with no subsequent tax benefit.

Source

Land Transfer Tax Act, R.S.O. 1990, c.L.6; Ontario Ministry of Finance Land Transfer Tax information; Ontario Regulation 70/91 (exemptions); City of Toronto Municipal Code Chapter 760 (MLTT); O. Reg. 182/17 (NRST).

Frequently asked questions

How is Ontario land transfer tax calculated?: Ontario LTT uses a marginal rate structure applied to the purchase price. The 2025 rates are: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% on the portion above $2,000,000. For a single-family residence priced above $2,000,000, an additional 0.5% applies above that threshold under the additional non-resident tax rules (where applicable).
Who pays land transfer tax in Ontario?: The purchaser pays Ontario land transfer tax. It is due at closing and is collected by the purchaser's lawyer or notary, who remits it to the Ontario government through Teraview (the provincial electronic land registration system). The seller does not pay LTT. Tax is due on the day of registration of the transfer.
Is there a first-time home buyer rebate for Ontario LTT?: Yes. First-time home buyers in Ontario can claim a rebate of up to $4,000 on Ontario LTT (Land Transfer Tax Act, s.2.1). The rebate eliminates LTT entirely on homes priced up to approximately $368,000 (where the total LTT equals $4,000). For homes above that price, the rebate reduces but does not eliminate the tax. To qualify, the purchaser must never have owned a home anywhere in the world and must occupy the home as their principal residence.
Does Ontario LTT apply to new construction homes?: Yes. Ontario LTT applies to new construction homes based on the purchase price including any upgrades that are part of the original purchase agreement. GST/HST is excluded from the LTT calculation if it is separately itemised. For assignment sales (selling a pre-construction agreement before closing), LTT may apply to the full assignment price including the original purchase price and any profit.
Are there any Ontario LTT exemptions?: Key exemptions include: transfers between spouses (as defined under the Family Law Act) are exempt; transfers to a child from a parent where no money changes hands may qualify for an exemption under O. Reg. 70/91; certain transfers involving a change of business structure (amalgamations, corporate reorganisations) may be exempt under specific regulations; farm property transfers under certain conditions; and transfers under court orders. All exemptions require the transfer to be registered and accompanied by an affidavit claiming the exemption.
How do I pay Ontario land transfer tax?: Ontario LTT is collected at closing by the purchaser's lawyer or notary and remitted to the province through Teraview. The purchaser does not pay it directly to the government; the closing funds transfer includes the LTT amount, which the lawyer pays on closing day. For electronic registrations, the tax is calculated automatically in the Teraview system.
Is Ontario LTT tax deductible?: Ontario LTT is not deductible for a principal residence. For an investment or rental property, LTT is added to the adjusted cost base (ACB) of the property as an acquisition cost, which reduces the capital gain on eventual sale. LTT cannot be deducted as a current expense against rental income in the year of purchase; it is a capital cost.
What is the Ontario LTT on a $800,000 home?: Ontario LTT on $800,000: 0.5% x $55,000 = $275; 1.0% x $195,000 = $1,950; 1.5% x $150,000 = $2,250; 2.0% x $400,000 = $8,000. Total = $12,475. A first-time home buyer would reduce this by the $4,000 rebate to $8,475.
Does Ontario LTT apply to commercial properties?: Yes. Commercial, industrial, and multi-residential properties are subject to Ontario LTT using the same rate schedule as residential properties, but they do not qualify for the first-time home buyer rebate. The additional 0.5% rate above $2,000,000 applies to all property types (residential and non-residential) without distinction.
Are non-residents of Canada subject to additional LTT in Ontario?: Non-Canadian citizens and non-permanent residents who purchase residential property in the Greater Golden Horseshoe (GGH) region are subject to the Non-Resident Speculation Tax (NRST) of 25%, which is separate from and in addition to LTT. The NRST was increased from 20% to 25% effective March 27, 2022. Certain exemptions apply, including for protected persons, nominees, and recent new permanent residents.

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Methodology

Marginal rate calculation: 0.5% on first $55,000; 1.0% on $55,001-$250,000; 1.5% on $250,001-$400,000; 2.0% on $400,001-$2,000,000; 2.5% above $2,000,000. FTHB rebate max $4,000.