How Ontario calculates land transfer tax
The province charges the tax in slices. Each slice of the price is taxed at its own rate, and the slices are added together. A home with one or two single family residences uses these rates.
| Portion of the price | Ontario rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Toronto charges a second tax
Homes inside the City of Toronto pay a municipal land transfer tax on top of the provincial one. Up to $3 million the Toronto rates match Ontario's, so the bill roughly doubles. Above $3 million the city's rates rise in steps, and they went up again on April 1, 2026.
| Portion of the price | Toronto rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% |
| $3,000,000 to $4,000,000 | 4.40% |
| $4,000,000 to $5,000,000 | 5.45% |
| $5,000,000 to $10,000,000 | 6.50% |
| $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
Brampton, Mississauga, Caledon, Milton, Oakville and Vaughan have no municipal land transfer tax. That is the main reason the same house costs less to close a few streets outside the Toronto boundary.
First-time buyer rebates
Ontario refunds up to $4,000 of its tax to first-time buyers, which covers the full provincial tax on a home up to $368,000. Toronto rebates up to $4,475 of its tax, which covers the full city tax on a home up to $400,000. Above those prices you pay the difference. You must be at least 18, a Canadian citizen or permanent resident, live in the home within nine months, and never have owned a home anywhere in the world. If you have a spouse, they cannot have owned a home while being your spouse.
A worked example at $850,000
On an $850,000 townhouse the Ontario tax is $13,475: $275 on the first slice, $1,950 on the second, $2,250 on the third and $9,000 on the last. A first-time buyer in Brampton pays $9,475 after the $4,000 refund. The same buyer in Toronto pays the $9,475, plus another $13,475 to the city, less the $4,475 city rebate, for $18,475 in total. The Toronto address costs $9,000 more in cash on closing day.
Questions buyers ask
Can I add land transfer tax to my mortgage?
No. Your lawyer collects it from you with the rest of your closing funds and pays it when the deed is registered. Budget for it alongside your down payment.
Do I pay land transfer tax on a new build?
Yes. It is charged on the purchase price net of the HST that is included in a builder's price, so the taxable amount is slightly lower than the sticker price. Your lawyer works out the exact figure.
Is there an extra tax for buyers who are not residents?
Yes. Ontario's Non-Resident Speculation Tax is 25 per cent of the price for foreign nationals and foreign corporations, on top of land transfer tax. Canadian citizens and permanent residents do not pay it. This calculator does not include it.
Next, see what the monthly cost looks like with the mortgage payment calculator, or read the first-time buyer guide for every closing cost in one place.
Sources
- Ontario Ministry of Finance, Land Transfer Tax and the refund for first-time homebuyers.
- City of Toronto, Municipal Land Transfer Tax rates, including the high value residential rates effective April 1, 2026.
This calculator gives an estimate for information only. Your lawyer confirms the final amount before closing.