Common questions
Ontario land transfer tax
Land transfer tax is one of the largest closing costs buyers face, and it catches people out because it's due in cash on closing day. Here's what it is and how it's worked out.
Work out your land transfer tax
Ontario land transfer tax
| Portion of price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 – $250,000 | 1% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2% |
| Over $2,000,000 | 2.5% |
Applies everywhere in Ontario — including Mississauga, Oakville, Burlington and Brampton.
Toronto municipal tax
| Portion of price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 – $250,000 | 1% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2% |
| $2,000,000 – $3,000,000 | 2.5% |
| $3,000,000 – $4,000,000 | 3.5% |
| $4,000,000 – $5,000,000 | 4.5% |
| $5,000,000 – $10,000,000 | 5.5% |
| $10,000,000 – $20,000,000 | 6.5% |
| Over $20,000,000 | 7.5% |
Only inside the City of Toronto. Buying in Mississauga or Oakville? You pay the provincial tax only.
First-time buyer rebates: up to $4,000provincially and $4,475 in Toronto. Rates verified 1 August 2026.This is an estimate for planning only, not tax or legal advice — confirm the exact amount with your real estate lawyer before closing.
- What is Land Transfer Tax?
Land Transfer Tax is a one-time tax paid upon the purchase of a property. The tax is based on the purchase price of the property and is different for the City of Toronto. Check out our video blog to learn more.
Watch the video explainer- Who Pays the Land Transfer Tax?
Typically, the buyer of the property is responsible for paying the Land Transfer Tax at the time of closing.
- How is Land Transfer Tax Calculated?
Land Transfer Tax is calculated as a percentage of the property's purchase price. The tax rates may vary depending on your jurisdiction. Click link to calculate Calculators
- Are There Any Exemptions or Rebates?
Certain exemptions or rebates may apply for first-time homebuyers, and these vary by location. Consult with ELIXIR Real Estate to understand the rebates you may qualify for. Check out our video blog to learn more.
Watch the video explainer- How much is land transfer tax on a typical Mississauga or Oakville home?
On a $900,000 purchase you'd pay $14,475 in Ontario land transfer tax. On $1,100,000 it's $18,475. Neither figure includes the Toronto municipal tax, because that only applies inside the City of Toronto — buying in Mississauga, Oakville, Burlington or Brampton means you pay the provincial tax only. Use the calculator above for your own number.
- When exactly do I have to pay it?
On closing day. Your lawyer collects it along with the balance of the purchase price and remits it when the transfer is registered. It is not billed later and it is not spread out, which is why it needs to be in your closing budget from the start.
- Can I add land transfer tax to my mortgage?
No. Land transfer tax is a closing cost, and closing costs cannot be financed into a standard insured mortgage — they have to be paid in cash on closing. This is the single most common budgeting mistake we see with first-time buyers. Plan for roughly 1.5% to 2% of the purchase price in total closing costs, of which land transfer tax is usually the largest part.
- What if only one of us is a first-time buyer?
You can still claim a portion. If you're buying with a spouse who has owned a home before, you may claim the rebate in proportion to your own interest in the property — so a 50/50 purchase would generally allow half the maximum rebate. Your lawyer will confirm the exact entitlement based on your situation.
- Do I pay land transfer tax on a new build?
Yes. Land transfer tax applies to new construction and pre-construction purchases just as it does to resale, and it's calculated on the purchase price. With pre-construction you pay it on final closing, not on signing — which can be years later, so budget for it well in advance.
- Is it different if I'm not a Canadian citizen or permanent resident?
It can be significantly different. Ontario applies a Non-Resident Speculation Tax on top of the regular land transfer tax for certain foreign buyers, and it applies across the whole province. The rate is substantial, so if this may apply to you, get advice from a real estate lawyer before you make an offer rather than after.