Irina Marchenkova · RE/MAX Realtron Realty
Land Tax Calculator
Calculate Ontario and Toronto land transfer tax in seconds, with 2026 rates, first-time buyer rebates and worked examples from Irina Marchenkova.
Land Tax Calculator
How land transfer tax works in Ontario
Land transfer tax is paid by the buyer when a property changes hands, and your lawyer collects it on closing day. It is not added to your mortgage, so it needs to be part of your cash budget. Everyone buying in Ontario pays the provincial tax. If the property is in the City of Toronto, you also pay Toronto’s municipal land transfer tax, so Toronto buyers pay roughly double.
Ontario land transfer tax rates (homes with one or two single-family residences)
| Portion of the 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% |
| Over $2,000,000 | 2.5% |
Toronto municipal land transfer tax
Toronto’s tax uses the same rates as Ontario up to $3 million. Above that, higher luxury rates apply: 3.5% from $3 to $4 million, 4.5% from $4 to $5 million, 5.5% from $5 to $10 million, 6.5% from $10 to $20 million and 7.5% above $20 million.
First-time buyer refunds
- Ontario: a refund of up to $4,000, which covers the full tax on homes up to about $368,000.
- Toronto: a rebate of up to $4,475, which covers the full municipal tax on homes up to $400,000.
To qualify you generally must never have owned a home anywhere in the world, and you must live in the home as your principal residence. Your lawyer applies for the refunds at closing.
Worked examples
| Purchase price | Outside Toronto (Ontario tax only) | In Toronto (Ontario + Toronto) | In Toronto, first-time buyer |
|---|---|---|---|
| $700,000 | $10,475 | $20,950 | $12,475 |
| $1,000,000 | $16,475 | $32,950 | $24,475 |
Other things to know
- Buyers who are not Canadian citizens or permanent residents may also owe Ontario’s 25% Non-Resident Speculation Tax.
- Land transfer tax is only one closing cost. Also budget for legal fees, title insurance and adjustments. See the guide to closing costs in Ontario.
Rates as of 2026, for general information. Your lawyer will confirm the exact amount for your purchase. Questions? Contact Irina Marchenkova or call 416-846-8064.
Frequently asked questions
How much is land transfer tax in Toronto?
In Toronto you pay both the Ontario land transfer tax and Toronto's municipal land transfer tax. On a $1,000,000 home each tax is $16,475, so the total is $32,950 before any first-time buyer refunds.
Do first-time buyers pay land transfer tax in Ontario?
First-time buyers can get a refund of up to $4,000 on the Ontario land transfer tax and up to $4,475 on Toronto's municipal tax. That covers the full tax on homes up to about $368,000 (Ontario) and $400,000 (Toronto); above that, you pay the difference.
When do you pay land transfer tax?
On closing day. Your real estate lawyer calculates the tax, collects the money from you before closing and pays it when the transfer is registered. It cannot be added to your mortgage, so include it in your cash budget.
Do you pay land transfer tax in Markham, Mississauga or Vaughan?
Yes, but only the Ontario land transfer tax. Toronto is the only city in Ontario with its own municipal land transfer tax, so buyers outside Toronto pay roughly half as much.
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