Ontario Land Transfer Tax Calculator
Looking to calculate your land transfer tax in Ontario? Before you finalize your home purchase, you’ll want to ensure you’ve put enough money aside to cover items associated with closing the deal. There are several fees and closing costs related to transferring the property from seller to buyer. It would be best if you were prepared to avoid any unpleasant surprises. nesto’s Land Transfer Calculator will help simplify your budgeting efforts for all the costs associated with your homebuying process.
See: Everything You Need to Know About the Land Transfer Tax
Ontario Land Transfer Tax Calculator
Land Transfer Tax Rates in Ontario
The Land transfer tax (LTT) rates in Ontario are calculated based on the purchase price of your property as well as the location. The amount of tax is doubled if the property is located in Toronto.
| Home Value or Purchase Price | Marginal LTT Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| $2,000,000+ | 2.5% |
Note: You may use our Land Transfer Calculator to estimate your required land transfer tax for Ontario; however, the final value must be confirmed with your solicitor.
Ontario Land Transfer Tax (LTT) Rebate
If you fit the definition of a first-time buyer and a provincial resident, you may be eligible for a provincial land transfer tax rebate. To benefit from the maximum refund of $4,000, the home you purchase will require a value higher than $368,000. No land transfer tax is charged on homes worth less than that, as a full rebate will be applicable.
Check out the Ontario Land Transfer Tax Refunds for First-Time Homebuyers to see if you qualify for a rebate on your home purchase.
First-time home buyers in Ontario and the City of Toronto are eligible for a refund of all or part of the land transfer tax.
Toronto Municipal Land Transfer Tax
The location is important as homes purchased within Toronto will have a second municipal land transfer tax (MLTT), doubling the provincial amount of the tax.
Toronto Municipal Land Transfer Tax (MLTT) for Single-Family Homes
| Home Value or Purchase Price | Marginal MLTT Rate |
|---|---|
| Up to and including $55,000.00 | 0.5% |
| $55,000.01 to $250,000.00 | 1% |
| $250,000.01 to $400,000.00 | 1.5% |
| $400,000.01 to $2,000,000.00 | 2% |
| $2,000,000.01 to $3,000,000.00 | 2.5% |
| $3,000,000.01 to $4,000,000.00 | 3.5% |
| $4,000,000.01 to $5,000,000.00 | 4.5% |
| $5,000,000.01 to $10,000,000.00 | 5.5% |
| $10,000,000.01 to $20,000,000.00 | 6.5% |
| Over $20,000,000.00 | 7.5% |
Toronto Municipal Land Transfer Tax (MLTT) for Multi-Unit Properties
The location is important as condos purchased within Toronto will have a second municipal land transfer tax (MLTT), doubling the provincial amount of the tax.
| Home Value or Purchase Price | Marginal MLTT Rate |
|---|---|
| Up to and including $55,000.00 | 0.5% |
| $55,000.01 to $250,000.00 | 1% |
| $250,000.01 to $400,000.00 | 1.5% |
| Over $400,000.00 | 2% |
Example
Purchase condo with valuation/purchase price of $750,000.
Using the Toronto land transfer tax calculator, you can anticipate paying the total Land Transfer Taxes of $22,950 ($11,475 for each provincial and municipal land transfer tax).
Here’s the breakdown of how to calculate the municipal portion:
| MLTT Rate | Calculation |
|---|---|
| $0.00 to $55,000.00 | $55,000.00 * 0.5% = $275.00 |
| $55000.01 to $250000 | $194,999.99 * 1.0% = $1,950.00 |
| $250000.01 to $400000 | $149,999.99 * 1.5% = $2,250.00 |
| $400000.01 to $750000 | $349,999.99 * 2.0% = $7,000.00 |
| Total MLTT = $11,475.00 |
Toronto Municipal Land Transfer Tax (MLTT) Rebate
Under Toronto’s First-Time Purchaser Rebate any qualified homebuyer can receive additional land transfer tax relief if they purchase a newly built or resale residential property inside the City of Toronto. All the requirements for Ontario’s provincial rebate program would apply similarly to the municipal rebate, but the maximum amount here is $4,475.
If you qualify for the provincial refund and municipal rebate, you could be eligible for up to $8,475 in savings.
For conveyances and dispositions of beneficial interest in land of an eligible home on or after March 1, 2017, and a rebate of up to $4,475.00. The definition of a first-time purchaser includes all of the above, and:
- the purchaser is a Canadian citizen or permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the transfer, they may apply for and may qualify for the rebate
The first-time home purchase rebate applies to:
- newly constructed
- resale residential properties
The rebate does not apply to:
- commercial, industrial or multi-residential properties
Ontario & Federal Taxes and Regulations
Beyond the provincial and municipal land transfer taxes, other taxes could apply to your situation for a home purchase. Please review in detail to see if these additional taxes impact you. We have included links to the taxes and additional links if any programs exist for rebates.
Non-Resident Speculation Tax (NRST) in Ontario applies to the purchase or acquisition of an interest in residential property located anywhere in Ontario by foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees. More commonly known as foreign buyer’s tax, it was originally limited to properties in the Greater Toronto and Hamilton Area (GTHA) at 20%. However, this past month was changed to include property purchases anywhere in the province and increased to 25%. There are exemptions to the NRST – please review fully on the provincial site to see if you qualify for these exemptions.
The federal government announced a measure to prohibit non-Canadians from purchasing residential property in Canada for 2 years in Budget 2022. The legislation known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act was passed on June 23, 2022. This law will come into effect on January 1, 2023, for two years ending on December 31, 2025.
Harmonized Sales Tax (HST) which is 13% in Ontario, is made up of the 8% Provincial Sales Tax (PST) and the 5% Goods and Services Tax (GST). HST is charged on all newly built homes and condos in Ontario. The rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300. The rebate you can receive for the PST Portion is 75% of the PST tax amount up to a maximum of $24,000 if you paid HST on the land the property is on and $16,080 if not. Through the New Housing Rebate (NHR), you can get an exemption from paying this tax if you meet certain conditions if this home is your primary residence. Conversely, if you plan to rent out the newly built home, then you may be able to claim the HST as a legitimate business expense. As well as applying to the CRA for the second type of rebate designed for real estate investors, the New Residential Rental Property Rebate (NRRPR).
Provincial Sales Tax (PST) of 8% is collected in Ontario by your solicitor on the amount of your default (high ratio) mortgage insurance. An insured mortgage is qualified as such when your down payment is less than 20%. Therefore, you will need to purchase default (high ratio) insurance. Although this insurance is added to your mortgage, the taxes (PST) on purchasing this insurance are not. Upon closing, your solicitor will collect and remit the PST on behalf of the default (high ratio) insurer (CMHC, Sagen, or Canada Guaranty).
Ontario Property Taxes
Property tax is a levy based on the property’s assessed value payable to your municipality per their schedule.
Property taxes have two components: a municipal portion and an education portion.
- Each municipality establishes the rates for the municipal portion of the tax.
- The Minister of Finance established the rates for the education portion of the tax and help fund Ontario’s elementary and secondary education system.
Property taxes are calculated using the Current Value Assessment of a property, as determined by the Municipal Property Assessment Corporation (MPAC), multiplying it by the combined municipal and education tax rates for the applicable property class.
Click on your municipality below for more details on tax rates, payment schedules and contact information.
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