What is Land Transfer Tax and how do I calculate it?

Ontario Land Transfer Tax

The Ontario Land Transfer tax is a tax that is paid to the government of Ontario by those individuals or corporations acquiring property or land. The tax is primarily based on the amount paid for the property which amount is taxed following different tax rates.

As example, for land containing one or two single family residences, the tax rate is as follows:  

- 0.5% up to and including $55,000
- 1% above $55,000 up to and including $250,000
- 1.5% above $250,000
- 2% above $400,000

Some exceptions exist where persons may not pay land transfer tax for example in the case of certain transfers between spouses. There exists also the possibility of a rebate or refund on a portion of the land transfer tax payable for first-time homebuyers. However in order to qualify several criteria must be met. To determine if you quality, you should contact your lawyer and discuss the criteria with him/her. Please see the following about the Land Transfer Tax Refund/Rebate for first-time homebuyers.

Also, it should be noted that some municipalities have also implemented their own municipal land transfer tax which is also payable at the time of acquisition of land in addition to the Ontario land transfer tax. For example, the city of Toronto via collects its Municipal Land Transfer Tax (MLTT) on acquisitions of land within the city.

Land Transfer Tax Calculator for Residential Transactions in Ontario  (1 or 2 single family residences)

Enter the purchase price ($):
 
Ontario Land Transfer Tax ($):  

 
For more information about Land Transfer Tax, please contact us or visit the Ontario Ministry of Finance website.