Land Transfer Tax

LTT

A tax buyers pay when property changes hands, set by the province, with Toronto adding its own municipal tax on top.

Land transfer tax is a tax the buyer pays when ownership of property is transferred. Provinces set the rules, and the tax is usually based on the purchase price. In Ontario it is payable when the transfer is registered, which normally happens on closing. British Columbia calls its version the property transfer tax.

Ontario uses marginal brackets, so each rate applies only to the slice of the price within it. For a home with one or two single-family residences, the rate is 0.5% on the first $55,000 and 1% up to $250,000. It rises to 1.5% up to $400,000, then 2% above that. The portion over $2,000,000 is taxed at 2.5%.

Toronto charges a Municipal Land Transfer Tax on top of Ontario's, so buyers in the city pay both. Its brackets up to $2,000,000 match Ontario's. From April 1, 2026, the city applies higher rates to the portion of a home's price above $3,000,000. These range from 4.4% up to 8.6% on amounts over $20,000,000.

First-time buyers can get relief. Ontario refunds up to $4,000 of its tax, and Toronto rebates up to $4,475 of the municipal tax. Both require that you are at least 18 and have never owned a home anywhere in the world. You must move in within nine months, and be a Canadian citizen or permanent resident. You can usually claim at registration, or apply within 18 months afterwards.

In British Columbia, the first time home buyers' exemption removes the tax on homes worth $500,000 or less. Between $500,000 and $835,000, the exemption is worth up to $8,000. It then shrinks and disappears at $860,000. Rules differ in each province, so confirm what applies before you set your budget.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.