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Ontario Land Transfer Tax: A Guide for Homebuyers
The Ontario land Transfer Tax (LTT) is a marginal tax, meaning different portions of the home’s value are taxed at different rates. Understanding these rates is essential for budgeting your home purchase.
| Purchase Price of Home | Marginal Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000.01 to $250,000.00 | 1.0% |
| $250,000.01 to $400,000.00 | 1.5% |
| $400,000.01 to $2,000,000.00 | 2.0% |
| Over $2,000,000 | 2.5% |
Note: Buyers in Toronto must also pay the Toronto Land Transfer Tax in addition to the provincial tax.
Ontario Land Transfer Tax Rebate for First-Time Buyers
First-time homebuyers may qualify for a maximum rebate of $4,000. This fully covers the LTT on homes valued up to $368,000. Homes above this threshold receive the full $4,000 rebate, with the buyer responsible for any remaining balance.
| Purchase Price | Land Transfer Tax | First-Time Buyer Rebate | Net Tax Payable |
|---|---|---|---|
| $100,000 | $725 | $725 | $0 |
| $200,000 | $1,725 | $1,725 | $0 |
| $227,500 | $2,000 | $2,000 | $0 |
| $600,000 | $8,475 | $4,000 | $4,475 |
Eligibility Requirements for the Rebate
- Must be a Canadian citizen or permanent resident
- Must be 18 years or older
- Must occupy the home within nine months of purchase
- Cannot have owned a home anywhere in the world
- Spouse must not have owned a home while being your spouse
- Newly constructed homes must qualify for a home warranty
- Applications must be submitted within 18 months of purchase
Ontario Non-Resident Speculation Tax
The NRST applies on the purchase of residential property anywhere in Ontario by foreign nationals, foreign corporations, or taxable trustees. This applies in addition to the general Land Transfer Tax.
Toronto Land Transfer Tax
Toronto imposes a municipal land transfer tax (MLTT). As of January 1, 2024, higher rates apply for premium properties:
- Above $3 Million3.5%
- Above $20 Million7.5%
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