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Ontario Land Transfer Tax
In Ontario, you have to pay a land transfer tax when you buy a detached home, semi-detached, townhome or condo. Use our calculator to figure out how much you’ll owe at closing.

Land Transfer Tax

Purchase Price
   I am a first-time home buyer
Location
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Provincial

$0.00

Municipal

$0.00

Rebate

$0.00

Land Transfer Tax

$0.00


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Ontario Land Transfer Tax Rates

Tax on the portion of the purchase

Rate

… up to $55,000

0.5%

… between $55,001 and $250,000

1.0%

… between $250,001 and $400,000

1.5%

… between $400,001 and $2 million

2.0%

… over $2 million

2.5%

In Ontario, there is a bracketed land transfer tax system. You only pay the corresponding land transfer tax that falls within the ranges in the table. If you bought a house worth $500,000, the land transfer tax would be broken down like this:

Value of the Property

Rate

Tax Owed

First $55,000

0.5%

$275

Next $195,000

1.0%

$1,950

Next $150,000

1.5%

$2,250

Last $100,000

2.0%

$2000

Total tax owed

$6,475

Toronto

Tax on the portion of the purchase

Rate

… up to $55,000

0.5%

… between $55,001 and $250,000

1.0%

… between $250,001 and $400,000

1.5%

… between $400,001 and $2 million

2.0%

… over $2 million

2.5%

In Toronto, there is an additional land transfer tax. The tax rates are exactly the same as their provincial counterpart, so calculating it is easy – simply double the tax owed. The Toronto land transfer tax will always be double that of any other city in Ontario.
On that same $500,000 home, you would owe $6,475 × 2, or $12,950.

Ontario Land Transfer Tax Refund

A first-time homebuyer, for the purposes of the Ontario Land Transfer Tax Refund, is defined as someone who:

  1. Is at least 18 years old
  2. Has never owned a home or an interest in a homeanywhere in the world
  3. Has a spouse that has never owned a home while they were their spouse

You are not eligible for this refund even if the house you owned was a gift or inheritance. There is also no way for you to ever qualify as a “first-time” homebuyer again.
This rule is a lot more stringent than the First-Time Home Buyers’ Tax Credit or Home Buyers’ Plan, which only require you to not have owned a house in the past four years.
The refund is the exact amount of the land transfer tax owed, up to a maximum of $4,000.

Municipal Land Transfer Tax Rebate (Toronto)

A first-time homebuyer, for the purposes of the Municipal Land Transfer Tax Rebate, is defined as someone who:

  1. Is at least 18 years old
  2. Occupies the house as their principal residence no later than nine months after they claim ownership
  3. Has never owned a home or an interest anywhere in the world
  4. Has a spouse that has never owned a home while they were their spouse
  5. Is a Canadian citizen or permanent resident. If they become a resident or citizen within 18 months, they may apply for the rebate.

The rebate is the exact amount of the municipal land transfer tax paid, up to a max of $4,475.
Purchasing a property in Toronto as a first-time homebuyer can mean a rebate of up to $8,475.

How to Apply for the Ontario Land Transfer Tax Refund

There are there ways to file an application for the land transfer tax refund.

  1. In person at a land registry office
  2. In person at the Ministry of Finance
  3. Online

For applications made in person, you can receive the refund immediately, or pay the full tax and receive the refund up to 18 months later.

Sitemap Updated On November 18, 2018. Copyright 2018. All Rights Reserved. RateShop.ca

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