What is the land transfer tax in Ontario and who has to pay it?

The Land Transfer Tax (LTT) is a government fee paid when you buy a property in Ontario. The tax amount depends on the property’s purchase price, and all buyers must pay it at closing. First-time home buyers may receive a rebate of up to $4,000 toward the provincial portion of the tax.

How does the Toronto land transfer tax work?

If you buy a home in Toronto, you will pay two land transfer taxes: one provincial LTT and one municipal LTT. The Toronto municipal LTT mirrors the provincial tax rates, effectively doubling the total tax. Toronto also offers a municipal rebate of up to $4,475 for eligible first-time buyers.

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CLOSING COSTS & LAND TRANSFER TAX FOR FIRST-TIME HOME BUYERS IN ONTARIO

Q: Who qualifies for the first-time home buyer land transfer tax rebate in Ontario?

To qualify, you must be a Canadian citizen or permanent resident, have never owned a home anywhere in the world, and intend to use the property as your principal residence within nine months of purchase. If both spouses are first-time buyers, they may combine eligibility for the full rebate amount.

Buying your first home is exciting—but it’s important to understand that your down payment isn’t the only upfront cost - especially if you are eyeing Toronto.

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What Are Closing Costs?

Closing costs are the fees you pay on top of your down payment when finalizing your home purchase.

In Ontario, these usually include:

Land Transfer Tax (LTT) – Paid to the provincial government when you buy property.
Legal Fees – Lawyers handle the title transfer, mortgage registration, and closing paperwork.
Title Insurance – Protects against title fraud or errors.
Home Inspection & Appraisal Fees – Often required by lenders.
Property Tax Adjustments – If the seller prepaid property taxes, you’ll reimburse them.

Most buyers should budget 1.5%–4% of the purchase price for closing costs.

Land Transfer Tax in Ontario (and Toronto)

In Ontario, you pay a provincial Land Transfer Tax (LTT) based on the price of your home.

If you’re buying within the City of Toronto, there’s an additional municipal LTT—essentially doubling the tax.

Here’s a simplified example:

Home Price $600,000

Location Outside Toronto

Total LTT (Approx.) ~$8,475

Within Toronto ~$16,950 (Provincial + Municipal)

You can calculate this easily using Ontario Land Transfer Tax Calculator on our site.

First-Time Home Buyer Rebate

The good news? First-time home buyers in Ontario can receive a rebate of up to $4,000 on their provincial land transfer tax.

If your home is in Toronto, you can also get a Toronto municipal LTT rebate of up to $4,475, making your total possible savings up to $8,475.

To qualify, you (and your spouse, if applicable) must:

Be a Canadian citizen or permanent resident
Have never owned a home anywhere in the world
Intend to use the property as your principal residence

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Frequently Asked Questions

Common questions Canadians ask about this topic, answered in plain language.

Closing costs in Ontario typically range from 1.5% to 4% of the home’s purchase price. This includes legal fees, land transfer tax, title insurance, and adjustments for property taxes or utilities. First-time buyers may qualify for a land transfer tax rebate to help offset these costs.

The Land Transfer Tax (LTT) is a government fee paid when you buy a property in Ontario. The tax amount depends on the property’s purchase price, and all buyers (including first-time buyers) must pay it at closing. However, first-time home buyers can receive a rebate of up to $4,000 toward the provincial portion of the tax.

If you buy a home in Toronto, you’ll pay two land transfer taxes—one to the Province of Ontario and one to the City of Toronto. The Toronto municipal LTT mirrors the provincial rates, effectively doubling the total amount. Toronto also offers a municipal rebate up to $4,475 for eligible first-time buyers.

To qualify, you must: Be a Canadian citizen or permanent resident Not have owned a home before (anywhere in the world) Use the property as your principal residence within nine months of purchase If both you and your spouse are first-time buyers, you can combine your eligibility for the full rebate amount.

CLOSING COSTS & LAND TRANSFER TAX FOR FIRST-TIME HOME BUYERS IN ONTARIO

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