A first-time buyer in Ontario pays $4,475 in land transfer tax on a $600,000 home, $8,475 on $800,000 and $12,475 on $1 million. Buy in the City of Toronto and the same three homes cost $8,475, $16,475 and $24,475, because Toronto charges its own tax on top.
Those are the answers. Below is how each one is worked out, what the rebate actually covers, who qualifies, and the mistakes that cost buyers the refund.
The three examples at a glance
| Purchase price | Outside Toronto, first-time buyer | In Toronto, first-time buyer | Extra cost of buying in Toronto |
|---|---|---|---|
| $600,000 | $4,475 | $8,475 | $4,000 |
| $800,000 | $8,475 | $16,475 | $8,000 |
| $1,000,000 | $12,475 | $24,475 | $12,000 |
“Outside Toronto” means anywhere else in Ontario, including Brampton, Mississauga, Milton, Oakville, Caledon and Vaughan. Only the City of Toronto has a municipal land transfer tax.
How the tax is calculated
Ontario’s land transfer tax is charged in bands, like income tax. Each slice of the price is taxed at its own rate.
| Slice of the purchase price | Rate | Most tax this slice can add |
|---|---|---|
| First $55,000 | 0.5% | $275 |
| $55,000 to $250,000 | 1.0% | $1,950 |
| $250,000 to $400,000 | 1.5% | $2,250 |
| $400,000 to $2,000,000 | 2.0% | $32,000 |
| Over $2,000,000 | 2.5% | No limit |
A shortcut helps. The first $400,000 always costs $4,475. Above that, every extra $100,000 adds $2,000, until you reach $2 million.
Toronto’s municipal tax uses the same bands and rates up to $2 million, so for most homes it simply doubles the bill. Above $3 million, Toronto’s rates climb steeply under changes that took effect on April 1, 2026.
What the first-time buyer rebate covers
- Ontario: a refund of up to $4,000. That wipes out the tax on a home up to $368,000. Above that price you get the full $4,000 and pay the rest.
- Toronto: a rebate of up to $4,475 on the municipal tax. That covers the tax on a home up to $400,000.
Together, a first-time buyer in Toronto saves a maximum of $8,475. Outside Toronto the maximum is $4,000. Neither rebate grows with the price, so on a typical GTA home the rebate takes off a fixed amount and the rest is still due.
Example 1: a $600,000 home
This is condo and condo-townhouse territory in most of the GTA.
| Step | Calculation | Amount |
|---|---|---|
| First $55,000 at 0.5% | $55,000 × 0.005 | $275 |
| Next $195,000 at 1.0% | $195,000 × 0.01 | $1,950 |
| Next $150,000 at 1.5% | $150,000 × 0.015 | $2,250 |
| Last $200,000 at 2.0% | $200,000 × 0.02 | $4,000 |
| Ontario tax | $8,475 | |
| Ontario first-time refund | −$4,000 | |
| You pay, outside Toronto | $4,475 |
In Toronto: add the municipal tax of $8,475 and subtract the $4,475 rebate, which leaves $4,000 more. Total: $8,475. Without the first-time rebates a Toronto buyer would pay $16,950.
Example 2: an $800,000 home
Close to the price of a townhouse or semi-detached house in Brampton, or a larger condo in Mississauga.
| Step | Calculation | Amount |
|---|---|---|
| First $400,000 | From the bands above | $4,475 |
| Next $400,000 at 2.0% | $400,000 × 0.02 | $8,000 |
| Ontario tax | $12,475 | |
| Ontario first-time refund | −$4,000 | |
| You pay, outside Toronto | $8,475 |
In Toronto: the municipal tax is another $12,475, less the $4,475 rebate, which adds $8,000. Total: $16,475. A repeat buyer in Toronto would pay $24,950.
Example 3: a $1,000,000 home
Just above the GTA average sale price, and close to an average detached house in Brampton.
| Step | Calculation | Amount |
|---|---|---|
| First $400,000 | From the bands above | $4,475 |
| Next $600,000 at 2.0% | $600,000 × 0.02 | $12,000 |
| Ontario tax | $16,475 | |
| Ontario first-time refund | −$4,000 | |
| You pay, outside Toronto | $12,475 |
In Toronto: add $16,475 of municipal tax and take off $4,475, which adds $12,000. Total: $24,475. A repeat buyer in Toronto would pay $32,950.
At this price the rebate covers about a quarter of the bill outside Toronto and about a quarter in Toronto as well. It helps, but it is not the reason to choose one home over another.
Every price from $400,000 to $1.5 million
| Price | First-time buyer, outside Toronto | First-time buyer, Toronto | Repeat buyer, outside Toronto | Repeat buyer, Toronto |
|---|---|---|---|---|
| $400,000 | $475 | $475 | $4,475 | $8,950 |
| $500,000 | $2,475 | $4,475 | $6,475 | $12,950 |
| $600,000 | $4,475 | $8,475 | $8,475 | $16,950 |
| $700,000 | $6,475 | $12,475 | $10,475 | $20,950 |
| $800,000 | $8,475 | $16,475 | $12,475 | $24,950 |
| $900,000 | $10,475 | $20,475 | $14,475 | $28,950 |
| $1,000,000 | $12,475 | $24,475 | $16,475 | $32,950 |
| $1,200,000 | $16,475 | $32,475 | $20,475 | $40,950 |
| $1,500,000 | $22,475 | $44,475 | $26,475 | $52,950 |
For a price that is not in the table, use the land transfer tax calculator. It handles Toronto, the rebates and any amount.
Who counts as a first-time buyer
To claim the Ontario refund you must meet all of these:
- You are at least 18.
- You are a Canadian citizen or permanent resident. If you are not yet, you have 18 months after closing to become one and then apply.
- You will live in the home as your main residence within nine months of closing.
- You have never owned a home, or a share in one, anywhere in the world.
- Your spouse has not owned a home, or a share in one, while being your spouse.
Toronto’s rebate follows the same tests. New and resale homes both qualify.
Four situations that change the number
You are buying with someone who has owned before
The refund is scaled to the eligible buyer’s share. If two people buy an $800,000 home outside Toronto as equal owners and only one is a first-time buyer, the refund is half of $4,000. The bill is $10,475, not $8,475. A common exception is a spouse: if your spouse owned a home while married to you, neither of you qualifies.
A parent is on title to help you qualify
If a parent who has owned a home goes on title, the refund shrinks by their share of ownership. Many families keep the parent’s share to one per cent for this reason. Ask your lawyer and your lender before closing, since lenders have their own rules about who must be on title.
You inherited a share of a house
Owning a home counts however you came to own it. An inherited share, even one you sold years ago, usually ends your eligibility.
You owned a home in another country
The test is worldwide. A home owned abroad counts the same as one owned in Ontario.
How and when you pay
- When: on closing day. Your lawyer collects it with the rest of your closing funds and pays it when the deed is registered.
- How the rebate is claimed: your lawyer claims it at registration, so you only pay the net amount. If it was missed, you can apply to the province within 18 months of closing.
- It cannot go on the mortgage. Land transfer tax is paid in cash, on top of your down payment. On an $800,000 home with 10 per cent down, a first-time buyer outside Toronto needs $80,000 plus $8,475 plus legal fees.
- Tell your lawyer early that you are a first-time buyer, and tell them about any property you or your spouse have ever owned.
The Toronto question
For first-time buyers comparing a Toronto home with one just outside the city, the municipal tax is a real number. At $800,000 it is $8,000 more. At $1 million it is $12,000 more. That is cash, due on closing, that a buyer in Mississauga, Brampton or Vaughan keeps.
It is rarely enough on its own to decide where to live, but it belongs in the comparison alongside price and commute. Our comparison of what $900,000 buys in Brampton, Mississauga and Milton covers three cities with no municipal tax. If you are looking at new construction in the city, each project in our Toronto pre-construction list shows both taxes at its starting price.
Other first-time buyer help in Ontario
Land transfer tax is one of several programs. Check each with your lawyer, lender or accountant, because the rules and limits change.
- First Home Savings Account (FHSA). Tax-deductible contributions and tax-free withdrawals for a first home.
- Home Buyers’ Plan. A withdrawal from your RRSP for a down payment, repaid over time.
- First-Time Home Buyers’ Tax Credit. A federal credit claimed on your tax return for the year you buy.
- GST/HST relief on new homes. See our HST rebate summary.
Once you know your closing costs, the current mortgage rates page and the mortgage payment calculator cover the monthly side.
Questions first-time buyers ask
How much is land transfer tax on a $600,000 house in Ontario?
$8,475. A first-time buyer pays $4,475 after the $4,000 refund. In Toronto a first-time buyer pays $8,475 in total.
How much is land transfer tax on an $800,000 house in Ontario?
$12,475. A first-time buyer pays $8,475. In Toronto a first-time buyer pays $16,475 in total.
How much is land transfer tax on a $1 million house in Ontario?
$16,475. A first-time buyer pays $12,475. In Toronto a first-time buyer pays $24,475 in total.
Do first-time buyers pay land transfer tax in Ontario?
Only on homes above $368,000. Below that the $4,000 refund covers the whole tax. Above it, the refund takes $4,000 off.
Does Brampton or Mississauga have a land transfer tax?
No. Only the Ontario tax applies. Toronto is the only municipality in the province with its own.
Can I add land transfer tax to my mortgage?
No. It is paid in cash on closing.
Do I get the rebate on a pre-construction home?
Yes, if you meet the first-time buyer tests. The tax is calculated on the price before HST where the builder’s price includes it, so ask your lawyer for the exact figure.
Sources and method
- Ontario Ministry of Finance: land transfer tax rates and the refund for first-time homebuyers.
- City of Toronto: municipal land transfer tax rates and first-time purchaser rebate, including the rate changes of April 1, 2026.
- All figures calculated by Local Toronto from the published rates for a single-family residence.
This page is general information, not legal or tax advice. Your lawyer will confirm the amount for your purchase. HomeLife Landmark Realty Inc., Brokerage.