Ontario and Toronto Land Transfer Tax Explained (2026)

Land transfer tax is a one-time tax paid on closing when you buy property. In Ontario it applies to every purchase, new or resale.

Ontario rates

The tax is marginal — each rate applies only to the slice of the price in its band:

Value of the property	Rate
Up to $55,000	0.5%
$55,000 to $250,000	1.0%
$250,000 to $400,000	1.5%
Over $400,000	2.0%
Over $2,000,000 (one or two single-family homes)	2.5%

Quick formula for a home over $400,000 (up to $2 million): price × 2% − $3,525. A $500,000 home: $10,000 − $3,525 = $6,475.

Toronto’s municipal land transfer tax

Homes in the City of Toronto pay a second, municipal tax. It uses the same rates up to $3 million, then higher luxury rates that rose on April 1, 2026:

Value	Toronto rate
$2M to $3M	2.5%
$3M to $4M	4.40%
$4M to $5M	5.45%
$5M to $10M	6.50%
$10M to $20M	7.55%
Over $20M	8.60%

First-time buyer refunds

	Maximum refund
Ontario	$4,000 — no tax on the first $368,000
Toronto	$4,475

To qualify you must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move in within nine months.

Examples

Price	Ontario	Toronto (both taxes)	Toronto, first-time buyer
$500,000	$6,475	$12,950	$4,475
$800,000	$12,475	$24,950	$16,475
$1,200,000	$20,475	$40,950	$32,475

Paying it

Land transfer tax is due on closing, usually paid through your lawyer when the deed is registered. It can’t be added to your mortgage, so plan for it alongside your down payment.

Use the land transfer tax calculator for your price.