Land Transfer Tax in Ontario applies when property title changes hands. The provincial schedule is tiered from 0.5 percent on the first 55,000 up to 2.5 percent on amounts above 2 million. Toronto adds a municipal tax that mirrors the provincial brackets. On a 750,000 Toronto home you pay 11,475 provincial plus 11,475 municipal, for a combined 22,950 due at closing. First time buyers can claim up to 4,000 of provincial LTT and up to 4,475 of Toronto municipal LTT back at registration.
The 2026 rates, in full
Ontario Land Transfer Tax (LTT) is set by the Land Transfer Tax Act. The tax is calculated on the total consideration paid for the property. That includes the purchase price plus any assumed mortgage, plus the value of chattels that transfer with title.
| Portion of value | Provincial rate |
|---|---|
| Up to 55,000 | 0.5 percent |
| 55,001 to 250,000 | 1.0 percent |
| 250,001 to 400,000 | 1.5 percent |
| 400,001 to 2,000,000 | 2.0 percent |
| Above 2,000,000 (residential single family) | 2.5 percent |
How the tax is calculated
LTT is tiered. Each bracket only applies to the portion of the purchase price that falls inside it. The tax is not a flat percentage on the whole price.
The calculator walks the brackets in order. For every bracket the price crosses, it multiplies the bracket width by the bracket rate. The final number is the sum across all crossed brackets. When the property is inside Toronto city limits, the same schedule is walked a second time for the municipal tax, and the two figures are added.
Worked example: 750,000 purchase in Mississauga
A 750,000 purchase in Mississauga (outside Toronto, so no MLTT) works out as follows:
- 0.5 percent of 55,000 equals 275
- 1.0 percent of 195,000 equals 1,950
- 1.5 percent of 150,000 equals 2,250
- 2.0 percent of 350,000 equals 7,000
If the same property was in Toronto, another 11,475 of municipal LTT would apply, bringing the gross LTT to 22,950. A first time Toronto buyer recovers 4,000 provincial and 4,475 Toronto, for a net 14,475.
Toronto Municipal Land Transfer Tax
Toronto charges a separate Municipal Land Transfer Tax (MLTT) under City of Toronto By law 1423 2007. The MLTT brackets mirror the provincial schedule exactly. Buyers inside Toronto city limits pay both, back to back.
The city limit line matters. Mississauga, Vaughan, Oakville, and Markham are not inside Toronto and only attract provincial LTT. Postal codes starting with M are inside Toronto, with narrow exceptions. Khan Law confirms the LTT treatment on every closing file before the bank draft amount is sent to the buyer.
First time home buyer rebate
Ontario provides a refund of up to 4,000 of provincial LTT for eligible first time buyers. The City of Toronto provides a refund of up to 4,475 of MLTT. The refund is claimed at registration, not after closing.
Eligibility has four parts:
- The buyer is at least eighteen years old at closing.
- The buyer has never owned a home or an interest in a home anywhere in the world.
- The spouse of the buyer, if any, has never owned a home while they were the buyer spouse.
- The buyer intends to occupy the home as a principal residence within nine months of closing.
The rebate caps out at 368,000 purchase for the provincial portion and 400,000 for the Toronto portion, meaning any home above those price points uses the full rebate amount. Most GTA buyers qualify for the cap.
Corporate and trust buyers
Corporate and trust buyers pay LTT at the same rates as individuals. The first time home buyer rebate is not available to corporations, trusts, or any legal person other than a natural individual. Additional rules apply for corporate purchases, including:
- HST treatment on new construction may differ from an individual buyer.
- Non Resident Speculation Tax rules apply if the corporation has non resident shareholders.
- Beneficial ownership reporting under Ontario UBO rules.
- Attribution rules may apply on later dispositions.
Khan Law coordinates directly with the buyer accountant on the correct structure before the APS is signed. See the corporate clients page for fee ranges and partner contacts.
Common mistakes
- Claiming FTHB after closing. The rebate must be claimed at registration in the Teraview statement. If missed, a refund application is filed with the Ministry of Finance and takes 16 to 20 weeks.
- Assuming Mississauga or Vaughan is inside Toronto. Only the old City of Toronto attracts MLTT. Properties outside Toronto city limits only pay provincial LTT.
- Forgetting assumed mortgage on the consideration. An assumed mortgage counts as consideration and is added to the purchase price when calculating LTT.
- Filing the rebate with a corporate or trust buyer. The rebate is not available to legal persons. Correct screening happens at retainer, not at registration.
Related terms
Refund of up to 4,000 provincial and 4,475 Toronto LTT for eligible first time buyers.
25 percent tax on Ontario residential property bought by non citizen non PR buyers.
Final accounting of prepaid tax, utilities, condo fees as of closing.
Frequent questions
Who pays Land Transfer Tax
The buyer. Sellers do not pay LTT in Ontario.
When is LTT due
At closing, simultaneously with registration of the Transfer. Paid through the lawyer trust account.
Is LTT income tax deductible
LTT paid on a principal residence is not income tax deductible. LTT paid on an investment property is added to the adjusted cost base of the property and reduces the taxable capital gain when later sold.
Do I pay LTT on a gift from a parent
A true gift with zero consideration between family members attracts no LTT, provided the transferor does not take back a mortgage. An assumed mortgage counts as consideration.
How is LTT calculated on an assignment
LTT is calculated on the full consideration paid at final closing, including any assignment premium paid to the assignor. Khan Law reviews the assignment and confirms the LTT base before final closing.
Can corporate buyers claim the FTHB rebate
No. The rebate is only available to individual buyers who meet the personal eligibility test. Corporations and trusts are excluded.
Sources cited
- Ontario Ministry of Finance, Land Transfer Tax. Published by the Government of Ontario. ontario.ca/document/land-transfer-tax
- City of Toronto, Municipal Land Transfer Tax (MLTT) By law 1423 2007. toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt
- Ontario, Land Transfer Tax Act, R.S.O. 1990, c. L.6.
Last verified 18 April 2026 against published Ministry of Finance examples at 500k, 750k, 1M, 1.5M, and 2M price points. All calculator outputs match published figures.