🏡 Ontario Land Transfer Tax Calculator 2026 — Including Toronto MLTT
Land transfer tax is one of the biggest and most overlooked closing costs when buying property in Ontario. On a $750,000 home purchase in Toronto, you pay $19,475 in combined provincial and municipal land transfer tax — even before legal fees, inspection, and moving costs. This calculator shows your exact LTT bill and any first-time buyer rebates you qualify for.
Buying in Mississauga instead of Toronto? That same home costs $9,475 in provincial LTT only — saving you $10,000 versus the same home just across the city border. Enter your purchase price to see the full cost and your rebate eligibility.
📋 How to Use This Calculator
1Purchase Price: The actual agreed purchase price of the property.
2City of Toronto? Check yes if the property is within Toronto's city limits. This triggers the Municipal Land Transfer Tax (same rates as provincial — effectively doubling the LTT).
3First-Time Buyer? Check yes if neither you nor your spouse have ever owned a home anywhere in the world. This triggers the provincial rebate (up to $4,000) and Toronto rebate (up to $4,475).
4Click Calculate ✓ for your exact LTT bill, rebates, and net cost after rebates.
📊
What This Means For You
💡 Your Personalised Analysis
Ontario Land Transfer Tax — Complete Buyer's Guide 2026
$9,475
Provincial LTT on $750K
$18,950
Toronto MLTT+Provincial on $750K
$4,000
Max Provincial FTB Rebate
$4,475
Max Toronto FTB Rebate
Ontario LTT Rate Schedule
0.5% on the first $55,000
1.0% on $55,001 to $250,000
1.5% on $250,001 to $400,000
2.0% on $400,001 to $2,000,000
2.5% on amounts above $2,000,000
The Toronto Municipal Land Transfer Tax uses the identical rate schedule. Toronto buyers pay both — the combined rate effectively doubles the LTT cost versus buying just outside city limits.
First-Time Buyer Rebates — Who Qualifies
To qualify for Ontario's first-time buyer rebate of up to $4,000, you must: (1) be a Canadian citizen or permanent resident, (2) have never owned a home anywhere in the world at any time, (3) have a spouse who has never owned a home while being your spouse, (4) intend to occupy the property as your principal residence within 9 months of closing. If you previously owned a home but sold before marriage, your spouse's prior homeownership does disqualify you. The rebate reduces Ontario LTT to zero on purchases up to approximately $368,333.
Using the FHSA for Land Transfer Tax
The First Home Savings Account (FHSA) contributions are tax-deductible and qualifying withdrawals are completely tax-free. While typically thought of as a down payment tool, FHSA funds can be used for any qualifying home purchase costs, including closing costs like land transfer tax. Building your FHSA specifically toward covering the expected LTT on your target price range is a highly efficient use of this account.
💡 Reassessment risk: Underrepresenting the purchase price on the transfer document is a serious offense. The Ontario Ministry of Finance audits property transfers and can reassess LTT based on the fair market value. Always report the true purchase price including any personal property that was bundled into the transaction.
❓ Frequently Asked Questions — Ontario Land Transfer Tax 2026
How is Ontario land transfer tax calculated?
Ontario LTT uses a progressive rate schedule: 0.5% on the first $55,000; 1.0% on $55,001–$250,000; 1.5% on $250,001–$400,000; 2.0% on $400,001–$2,000,000; 2.5% above $2,000,000. On a $700,000 purchase: ($55,000 × 0.5%) + ($195,000 × 1.0%) + ($150,000 × 1.5%) + ($300,000 × 2.0%) = $275 + $1,950 + $2,250 + $6,000 = $10,475. The tax is due at closing and collected through your real estate lawyer. Budget for this as a separate closing cost beyond your down payment — many first-time buyers are caught off guard by this amount.
Who pays land transfer tax in Ontario?
The buyer pays land transfer tax — not the seller. It is collected at closing by your real estate lawyer from the closing funds. The seller pays real estate agent commission (typically 4%–5% of sale price split between agents), any outstanding mortgage penalties, and their own legal fees. As a buyer, total closing costs beyond the down payment typically include: land transfer tax, legal fees ($1,500–$2,500), title insurance ($200–$400), home inspection ($400–$600), and CMHC mortgage insurance premium if applicable. Total closing costs excluding the down payment typically run 2%–4% of purchase price in Ontario.
What is the first-time home buyer land transfer tax rebate in Ontario?
Ontario provides a rebate of up to $4,000 on provincial LTT for qualifying first-time buyers. This eliminates LTT entirely on purchases up to approximately $368,000 and partially reduces it above that amount. To qualify: you must be a Canadian citizen or permanent resident of the age of majority (18+), neither you nor your spouse can have previously owned a qualifying home anywhere in the world, and the home must become your principal residence within 9 months of transfer. The rebate is applied automatically through your lawyer at closing — no separate application is required from you as the buyer.
What is the Toronto Municipal Land Transfer Tax?
Toronto buyers pay both the provincial LTT and the Toronto Municipal Land Transfer Tax (MLTT), effectively doubling their total land transfer tax. The MLTT uses the same progressive schedule as the provincial LTT. On a $700,000 Toronto property, combined LTT is approximately $20,950 — versus $10,475 for the same property just outside Toronto in Mississauga, Brampton, or Markham. This $10,475 difference on a single transaction is why many Toronto buyers actively consider properties just outside the city limits, where equivalent housing often costs less and skips the additional MLTT entirely.
Does land transfer tax apply to newly built homes in Ontario?
Yes — LTT applies to all purchases of new and resale homes. For new builds, the purchase price used to calculate LTT may include upgrades and HST depending on the agreement structure. New home buyers also receive the federal HST New Residential Rebate (homes up to $450,000 receive a full rebate; phases out to $484,500), plus the Ontario New Housing Rebate for the provincial component. Purchasing newly built homes involves more complex tax calculations than resale — your real estate lawyer handles all calculations at closing, but understanding the approximate LTT amount helps you plan your total cash-to-close requirement accurately.
Can I use FHSA funds to pay land transfer tax?
Yes — First Home Savings Account funds withdrawn for a qualifying first home purchase can be used for any part of the purchase including land transfer tax, legal fees, and other closing costs. There is no restriction on which specific component of the purchase the FHSA funds cover, as long as the overall withdrawal qualifies. Strategically, building your FHSA balance to at least cover the expected LTT on your target property ensures you arrive at closing fully funded without draining your down payment savings. Opening an FHSA early and maximising contributions gives you the most time to accumulate and invest these funds tax-free.
Is land transfer tax included in my mortgage?
No — land transfer tax cannot be included in your mortgage and must be paid in cash at closing. This is one of the most commonly forgotten closing costs by first-time buyers. On a $700,000 purchase in Toronto, the combined $20,950 in LTT requires significant additional cash beyond the down payment. Budget for all closing costs — LTT, legal fees, title insurance, home inspection — when determining how much cash you need. Missing this requirement can delay or derail your closing. A comprehensive pre-purchase budget showing all cash requirements helps avoid unwelcome surprises at the closing table.
What other closing costs should I budget for when buying in Ontario?
Beyond land transfer tax: legal fees and disbursements ($1,500–$2,500 for a standard purchase); title insurance ($200–$500); home inspection ($400–$650 for a house); CMHC mortgage insurance premium if less than 20% down (2.8%–4.0% of mortgage amount, added to loan balance); moving costs ($1,500–$4,000 local); utility connection fees; and immediate repairs revealed during inspection. A conservative total closing cost budget excluding the down payment is 3%–4% of purchase price in Ontario — approximately $21,000–$28,000 on a $700,000 purchase that is easy to overlook when focused on the down payment alone.
How does Ontario land transfer tax compare to other Canadian provinces?
Land transfer tax varies significantly across Canada: Ontario 0.5%–2.5% plus Toronto MLTT. BC charges a Property Transfer Tax of 1% on the first $200,000, 2% on $200,001–$2,000,000, and 3% above. Alberta and Saskatchewan charge a flat land titles transfer fee of approximately $500–$600 on most residential transactions — dramatically lower than Ontario or BC. Quebec charges a Welcome Tax at similar progressive rates to Ontario. New Brunswick charges 0.5% on the full purchase price. Alberta's minimal fee is one of the most significant financial advantages for Alberta first-time home buyers compared to those in Ontario or BC making a comparable purchase.