Land Transfer Tax in Ontario Explained (2026)
How Ontario land transfer tax works in 2026 — the marginal brackets, the extra Toronto municipal tax, and the first-time buyer rebates that can save you thousands.
How Ontario land transfer tax works in 2026 — the marginal brackets, the extra Toronto municipal tax, and the first-time buyer rebates that can save you thousands.
Land transfer tax is the closing cost that surprises people most — a four- or five-figure bill due the day you take ownership. In Ontario it's calculated in brackets, Toronto buyers pay it twice, and first-time buyers get a rebate. Here's how it all works in 2026.
The short answer
Ontario charges land transfer tax (LTT) on every property purchase, calculated on a sliding scale from 0.5% to 2.5% of the price. Buyers in the City of Toronto pay an additional municipal LTT of roughly the same amount — effectively doubling it. First-time buyers get a rebate of up to $4,000 provincially (and up to $4,475 municipally in Toronto). Calculate your LTT here.
How the Ontario LTT is calculated
Provincial LTT is marginal, like income tax — each portion of the price is taxed at its bracket rate:
- 0.5% on the first $55,000
- 1.0% on $55,000 to $250,000
- 1.5% on $250,000 to $400,000
- 2.0% on $400,000 to $2,000,000
- 2.5% on the amount over $2,000,000
On a $700,000 home, that works out to roughly $10,475 provincially — before any rebate.
The Toronto municipal land transfer tax
If your home is in the City of Toronto, you pay a second land transfer tax to the city, calculated on a similar bracketed scale. That effectively doubles your LTT bill — a major reason closing costs are higher in Toronto than elsewhere in Ontario. Both taxes are due on closing.
The first-time buyer rebate
Eligible first-time buyers receive a rebate of up to $4,000 on the provincial LTT — enough to fully eliminate it on homes up to about $368,000 and reduce it above that. In Toronto, there's an additional municipal rebate of up to $4,475. To qualify you generally must be 18+, a Canadian citizen or permanent resident, never have owned a home anywhere, and move in within nine months. See all the programs in first-time buyer incentives and rebates.
Where LTT fits in your budget
LTT is usually the largest line in your closing costs, and it's payable in cash on closing — you can't roll it into the mortgage. Factor it in early, especially in Toronto, so it doesn't blow up your cash-to-close. The LTT calculator gives you the exact figure (and applies the rebate).
Frequently asked questions
How much is land transfer tax in Ontario?
It ranges from 0.5% to 2.5% of the purchase price on a marginal scale. On a $700,000 home, the provincial LTT is roughly $10,475 before any first-time buyer rebate.
Do I pay land transfer tax twice in Toronto?
Effectively yes — Toronto buyers pay both the provincial LTT and a municipal LTT of similar size, roughly doubling the total. Both are due at closing.
How much is the first-time buyer land transfer tax rebate?
Up to $4,000 on the provincial LTT, plus up to $4,475 on Toronto's municipal LTT for eligible first-time buyers.
Can I add land transfer tax to my mortgage?
No — LTT must be paid in cash on closing day. Budget for it as part of your closing costs from the start.
Buying in Ontario? Talk to us or use the LTT calculator — we'll confirm your exact tax and rebate so there are no closing-day surprises.
Mortgage content produced by Mortgage Squad Advisors' team of FSRA-licensed mortgage advisors and reviewed under the supervision of the brokerage's Principal Broker (FSRA Brokerage #13737) before publication.