Land Transfer Tax in Ontario: Rates, Rebates & Exemptions
Land Transfer Tax (LTT) is paid by the buyer on every purchase of land in Ontario. It is one of the largest closing costs — on a $900,000 home in Toronto, LTT (provincial + municipal) exceeds $30,000. Knowing the rates, rebates, and exemptions can significantly affect your budget.
Ontario Provincial LTT Rates (2025)
| Purchase Price | Marginal Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| Over $2,000,000 (residential) | 2.5% |
Example: On a $800,000 purchase: (55,000 × 0.5%) + (195,000 × 1.0%) + (150,000 × 1.5%) + (400,000 × 2.0%) = $275 + $1,950 + $2,250 + $8,000 = $12,475
Toronto Municipal LTT (City of Toronto Only)
Properties in the City of Toronto are subject to an additional Toronto Land Transfer Taxon top of the provincial LTT, using the same rate structure. Toronto buyers pay LTT twice.
On the same $800,000 Toronto purchase: provincial LTT ($12,475) + Toronto LTT (~$11,475) = ~$23,950 total.
First-Time Homebuyer Rebates
| Program | Maximum Rebate |
|---|---|
| Ontario provincial LTT first-time buyer rebate | Up to $4,000 |
| Toronto municipal LTT first-time buyer rebate | Up to $4,475 |
To qualify for the rebate, you must:
- Be at least 18 years of age
- Be a Canadian citizen or permanent resident
- Occupy the property as your principal residence within 9 months of closing
- Never have owned a home anywhere in the world
- If married or in a common-law relationship — your spouse also must never have owned a home (for the rebate to apply to their share)
Non-Resident Speculation Tax (NRST)
A 25% NRST applies to purchases of residential property anywhere in Ontario by foreign nationals and foreign corporations (non-citizens and non-permanent residents). The NRST is in addition to regular LTT. Exemptions are available for:
- Foreign nationals who become permanent residents or Canadian citizens within 4 years of purchase
- International students enrolled full-time at a recognized Ontario institution
- Foreign nationals working in Ontario with a valid work permit
Applications for NRST refunds must be made within 4 years of closing.
Transfers Between Family Members
Certain transfers are exempt from LTT or eligible for reduced LTT, including:
- Transfers from a parent to a child who is an adult (spouse's share of family home on marital breakdown)
- Transfers between spouses following a marital breakdown under a court order
- Transfers from an estate to a beneficiary under a will
Buying in Ontario? We review purchase agreements and advise on closing costs including LTT.
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