How to Calculate Closing Costs in Ontario (2026 Guide)

How to Calculate Closing Costs in Ontario

A step-by-step way to estimate land transfer tax, rebates, and the other costs due on closing day, with a worked example.

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Five Steps to Estimate Your Closing Costs Step 1: Land Transfer Tax Rates Worked Example: A $900,000 Toronto Home, First-Time Buyer What the Estimate Does Not Include Frequently Asked Questions

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The short answer

To calculate closing costs in Ontario, add up four things: land transfer tax (provincial, plus municipal if the home is in the City of Toronto), your legal fees and disbursements, title insurance and other closing costs, and adjustments for property tax and utilities. Subtract any first-time buyer rebate. Most buyers should plan for roughly 1.5% to 4% of the purchase price on top of the down payment.

Five Steps to Estimate Your Closing Costs

Calculate Ontario land transfer tax

Apply the provincial rates to the part of the price that falls in each bracket. The table below shows the rates.

Add Toronto's municipal land transfer tax, if it applies

Homes inside the City of Toronto pay a second tax at the same rates. Homes in Vaughan, Mississauga, Brampton, Markham and the rest of Ontario do not.

Subtract first-time buyer rebates, if you qualify

Ontario refunds up to $4,000 and Toronto rebates up to $4,475. You and your spouse must never have owned a home anywhere in the world.

Add legal fees, disbursements, and title insurance

Ask your lawyer for a written quote. Our page on real estate lawyer fees in Ontario explains what is included.

Add adjustments and other costs

Include property tax and utility adjustments, PST on the mortgage insurance premium if your mortgage is insured, your home inspection, and any appraisal fee.

Step 1: Land Transfer Tax Rates

For a home with one or two single-family residences, both the Province and the City apply these rates to the part of the price that falls in each bracket:

Portion of the purchase price

Rate

Up to $55,000

0.5%

$55,000 to $250,000

1.0%

$250,000 to $400,000

1.5%

$400,000 to $2,000,000

2.0%

Above $2,000,000, the Province charges 2.5% on the amount over that line for one or two single-family residences, and since April 1, 2026 the City of Toronto applies graduated rates to high-value homes. See the City of Toronto’s rates page and the Ontario government’s land transfer tax page for the official schedules. Our land transfer tax guide for Toronto has a full worked example.

Worked Example: A $900,000 Toronto Home, First-Time Buyer

Item

Amount

Ontario land transfer tax ($275 + $1,950 + $2,250 + $10,000)

$14,475

Toronto municipal land transfer tax (same rates)

$14,475

Less: Ontario first-time buyer refund

-$4,000

Less: Toronto first-time buyer rebate

-$4,475

Land transfer tax payable

$20,475

Legal fees and disbursements (example)

$2,200

Title insurance (example)

$750

Home inspection (example)

$600

PST on mortgage insurance premium, if insured (example)

$1,800

Property tax and utility adjustments (example)

$1,500

Estimated closing costs

$27,325

The figures marked as examples come from our closing costs guide. Replace them with the amounts in your own quotes. The same home in Vaughan has no municipal tax, so an eligible first-time buyer’s estimate drops to about $17,325. If you are not a first-time buyer, skip the rebate lines.

What the Estimate Does Not Include

Your down payment

The estimate covers closing costs only, not the down payment or the mortgage itself.

Moving and repairs

Moving costs, new furniture, and immediate repairs are extra.

Condo extras

Condo status certificate fees and any special assessments are not included.

Special taxes and levies

Non-resident speculation tax and development charges on pre-construction purchases are not included.

Frequently Asked Questions

How much are closing costs in Ontario?
Most buyers should plan for roughly 1.5% to 4% of the purchase price on top of the down payment. The exact figure depends mainly on the price, whether the home is in Toronto, and whether you qualify for a first-time buyer rebate.
Do I pay land transfer tax twice in Toronto?
Yes. Toronto buyers pay Ontario land transfer tax and the City of Toronto’s municipal land transfer tax. Buyers in Vaughan, Mississauga, Brampton, Markham and the rest of Ontario pay only the provincial tax.
When do I pay closing costs?
Most are due on closing day. Your lawyer collects them with your down payment, pays the land transfer tax when the transfer is registered, and gives you a statement showing every dollar. Your deposit and inspection are paid earlier.
Can you work out my closing costs before I make an offer?
Yes. Book a free legal consultation and we will go through your numbers with you.

Legal Information, Not Legal Advice. This page gives general estimates based on published Ontario and City of Toronto land transfer tax rates. Rates, rebates and eligibility rules can change, and your actual costs depend on your transaction. Speak with a real estate lawyer before you rely on any figure.

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