The short answer
The buyer pays Ontario land transfer tax when the transfer is registered. It is calculated in brackets on the purchase price, from 0.5% to 2.5%. On a $1,000,000 home it is $16,475.
If the home is in the City of Toronto, you also pay Toronto's municipal land transfer tax, which is the same amount up to $2,000,000, so the total on a $1,000,000 home is $32,950. Eligible first-time buyers can get back up to $4,000 from Ontario and up to $4,475 from Toronto.
What Is Land Transfer Tax in Ontario?
Land transfer tax is a provincial tax paid by the buyer when land or a home changes hands. It is calculated on the value of the consideration, which is usually the purchase price, and it is payable when the transfer is registered. The tax is separate from your legal fees and from the other costs of closing.
Your lawyer works out the amount, collects it from you together with your closing funds, and pays it as part of registering the transfer. The Province publishes the rules on its land transfer tax page.
Ontario Land Transfer Tax Rates
Each rate applies only to the part of the price that falls inside its bracket. These rates apply to agreements of purchase and sale made after November 14, 2016.
Portion of the purchase price
One or two single-family residences
Other property
$55,000 to $250,000
1.0%
1.0%
$250,000 to $400,000
1.5%
1.5%
$400,000 to $2,000,000
2.0%
2.0%
A shortcut the Province gives: for a price between $400,000 and $2,000,000, the tax is the price multiplied by 0.02, minus $3,525. Source: Ontario.ca, calculating land transfer tax.
How Much Is Land Transfer Tax? Worked Examples
These examples are for a home with one or two single-family residences. Toronto's municipal tax is included for homes in the City of Toronto and uses the same rates up to $2,000,000.
Purchase price
Ontario tax
Toronto tax (Toronto homes only)
Total in Toronto
$500,000
$6,475
$6,475
$12,950
$750,000
$11,475
$11,475
$22,950
$1,000,000
$16,475
$16,475
$32,950
$1,500,000
$26,475
$26,475
$52,950
$2,000,000
$36,475
$36,475
$72,950
Example With First-Time Buyer Relief
The same prices for an eligible first-time buyer, after the $4,000 Ontario refund and the $4,475 Toronto rebate. Each refund cannot be more than the tax it relates to.
Purchase price
Ontario tax after refund
Total in Toronto after both
Toronto Buyers Pay a Second Tax
The City of Toronto charges its own municipal land transfer tax on top of the provincial tax. Buyers in Vaughan, Mississauga, Brampton, Markham and the rest of Ontario pay only the provincial tax. Up to $3,000,000 the Toronto rates match Ontario's. For one or two single-family residences, higher graduated rates apply above $3,000,000 to transfers on or after April 1, 2026:
Portion of the purchase price
Toronto rate
$2,000,000 to $3,000,000
2.5%
$3,000,000 to $4,000,000
4.40%
$4,000,000 to $5,000,000
5.45%
$5,000,000 to $10,000,000
6.50%
$10,000,000 to $20,000,000
7.55%
For example, on a $3,500,000 home in Toronto the provincial tax is $73,975 and the municipal tax is $83,475, a total of $157,450. Source: City of Toronto, municipal land transfer tax. For a Toronto-only walk-through with a glossary, see our Toronto land transfer tax guide.
First-Time Home Buyer Refunds
Ontario refunds up to $4,000 of land transfer tax to eligible first-time buyers. No tax is payable on the first $368,000 of the price, so a buyer of a more expensive home receives the full $4,000. Toronto rebates up to $4,475 of its municipal tax, which covers the whole tax on a home up to $400,000.
01
Age and status
You must be at least 18 and, for agreements signed after November 14, 2016, a Canadian citizen or permanent resident. If you become one within 18 months of the transfer, you may still apply.
02
Never owned a home
You cannot have owned a home, or an interest in one, anywhere in the world.
03
Your spouse
Your spouse cannot have owned a home anywhere in the world while they were your spouse. If they did, neither of you can claim the refund.
04
Move in on time
You must occupy the home as your principal residence within nine months of the transfer.
If a co-buyer does not qualify, the refund is proportionate to the share held by the buyers who do. We can claim the refund when the transfer is registered where you qualify. If it was missed, you can still apply within 18 months of registration: to the Ministry of Finance for the provincial refund, and to the City of Toronto for the Toronto rebate. Sources: Ontario.ca, first-time homebuyer refunds and City of Toronto, rebate opportunities.
Exemptions and Special Situations
01
Between spouses and family businesses
Ontario exempts certain transfers between spouses and certain transfers from an individual to their family business corporation. It also exempts certain transfers of farmed land between family members. The exemptions have conditions, so speak to us before you assume one applies.
02
New homes
Buying a new or substantially renovated home brings HST, which resale homes do not carry. A rebate of the provincial portion of the HST may be available on new homes, and it is separate from land transfer tax.
03
Non-residents
Foreign nationals and foreign corporations may owe Ontario's Non-Resident Speculation Tax, currently 25%, in addition to land transfer tax. Check with us before you sign.
04
Gifts and family transfers
Transferring a home to a child or other relative raises its own tax questions. Read our guide to transferring property to family before you act.
When and How Land Transfer Tax Is Paid
1
Your lawyer calculates the tax
Once the Agreement of Purchase and Sale is firm, we work out the provincial tax, the Toronto tax if it applies, and any refund you qualify for.
2
You provide the funds
The tax is included in the funds you give your lawyer before closing, together with your down payment and legal fees.
3
It is paid on registration
Land transfer tax is payable when the transfer is registered. Your lawyer pays it as part of registering your transfer.
4
You keep the record
Your lawyer's closing documents and reporting letter show the tax that was paid. Keep them with your records.
Land transfer tax is one part of your total closing costs. See our guides to closing costs in Ontario, how to calculate closing costs and real estate lawyer fees.
Frequently Asked Questions
Who pays land transfer tax in Ontario, the buyer or the seller?
The buyer pays it. The seller does not pay land transfer tax on a sale.
When is land transfer tax due?
It is payable when the transfer is registered, which is on your closing day. You give the money to your lawyer with your other closing funds.
Do I pay land transfer tax if I buy outside Toronto?
Yes. Every buyer in Ontario pays the provincial tax. Only buyers in the City of Toronto also pay a municipal land transfer tax.
Does the first-time buyer refund cover all of the tax?
Only on lower prices. Ontario’s $4,000 refund covers the full tax on homes up to $368,000, and Toronto’s $4,475 rebate covers the full tax on homes up to $400,000. Above those prices you still pay the difference.
Can I still claim a first-time buyer refund after closing?
Yes. If it was not claimed at registration, you can apply within 18 months of the registration date, as long as you meet the conditions.
How much is land transfer tax on a $1,000,000 home?
$16,475 to Ontario. If the home is in Toronto, add another $16,475 for the City’s tax, for a total of $32,950 before any first-time buyer relief.
Legal Information, Not Legal Advice. Rates, refunds and eligibility rules can change. The figures here were checked against the Province’s and the City of Toronto’s published pages on October 8, 2026, and the worked examples are our own calculations from those rates. Confirm your situation with a real estate lawyer before you rely on them.
