Land Transfer Tax Ontario - What First-Time
A complete guide to Ontario Land Transfer Tax including rates, the first-time buyer rebate, Toronto Municipal LTT, and strategies to reduce your tax bill.
Land Transfer Tax (LTT) is one of the largest closing costs when buying property in Ontario. And if you are buying in Toronto, you face a double tax since the city levies its own Municipal Land Transfer Tax on top of the provincial one. Here is everything you need to know to plan for this expense in 2026.
Ontario Provincial Land Transfer Tax Rates
| Value of Property | Marginal Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Like income tax, LTT is calculated on a marginal basis. You pay each rate only on the portion of the property value within that bracket.
Toronto Municipal Land Transfer Tax
Properties in the City of Toronto are subject to an additional Municipal Land Transfer Tax (MLTT) with its own rate structure:
| Value of Property | Marginal Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
LTT Examples
| Purchase Price | Provincial LTT | Toronto MLTT | Total (in Toronto) |
|---|---|---|---|
| $500,000 | $6,475 | $6,475 | $12,950 |
| $700,000 | $10,475 | $10,475 | $20,950 |
| $900,000 | $14,475 | $14,475 | $28,950 |
| $1,200,000 | $20,475 | $20,475 | $40,950 |
First-Time Home Buyer Rebates
Ontario and Toronto both offer LTT rebates for first-time home buyers:
Provincial Rebate
- Maximum rebate: $4,000
- Fully covers LTT on properties up to $368,000
- Available to Canadian citizens or permanent residents who have never owned a home anywhere in the world
- Your spouse must also be a first-time buyer
Toronto Municipal Rebate
- Maximum rebate: $4,475
- Fully covers MLTT on properties up to $400,000
- Same eligibility criteria as the provincial rebate
Combined maximum savings for first-time buyers in Toronto: $8,475
Who Qualifies as a First-Time Home Buyer
To qualify for the rebate, you must meet all of these criteria:
- You are at least 18 years old
- You are a Canadian citizen or permanent resident
- You will occupy the home as your principal residence within 9 months of purchase
- You have never owned an eligible interest in a home anywhere in the world
- Your spouse has never owned a home while being your spouse
Strategies to Reduce Land Transfer Tax
- Buy outside Toronto: Purchasing in surrounding areas like Mississauga, Brampton, or Markham eliminates the MLTT entirely while often providing lower property prices.
- Buy a new-build assignment: Assignment sales of pre-construction condos may offer LTT advantages depending on the structure of the transaction.
- Claim the first-time buyer rebate: Ensure you file for both the provincial and municipal rebates at closing.
- Budget for LTT separately: Do not let LTT eat into your down payment. Save for it as a separate closing cost to maintain your intended loan-to-value ratio.
When Is LTT Paid
Land Transfer Tax is due on the closing date of the property transaction. Your real estate lawyer collects it and remits it as part of the closing process. It is not possible to defer or pay in installments. Factor this into your cash flow planning for closing day.
Calculate your exact LTT with our Ontario Land Transfer Tax Calculator.