Toronto Land Transfer Tax Explained
November 14, 2025
November 14, 2025
Buying a home in Toronto comes with a unique cost that often catches buyers off guard: land transfer tax. If you know how it works, you can avoid surprises and budget confidently for closing. In this guide, you’ll learn what you pay in Toronto, how the two taxes are calculated, where rebates may apply, and simple steps to prepare. Let’s dive in.
When you buy property in the City of Toronto, you usually pay two separate land transfer taxes:
You pay both at closing when your lawyer registers the transfer. The tax is based on the purchase price or, in some cases, the fair market value.
For current rules, rates, and forms, see the City of Toronto’s land transfer tax page and the Government of Ontario’s land transfer tax page. These official pages are your best source for updates, calculators, and rebate details.
The buyer pays land transfer taxes. Your lawyer typically calculates the exact amount, prepares the forms, applies any eligible rebates, and remits the tax at registration. You need funds ready on closing day, so it is smart to confirm the numbers early in your search.
Both Ontario and Toronto use the same tiered rate structure. The rates apply to portions of the purchase price in brackets:
Since Toronto charges a municipal tax using the same brackets, most buyers inside the city pay both schedules. In practice, you calculate the provincial LTT on the price, then calculate the municipal LTT the same way, and add them together.
For the most current numbers and calculators, check the Ontario LTT page and the City of Toronto LTT page.
These examples show how the math works. Your lawyer will confirm exact amounts.
$500,000 purchase price
$1,000,000 purchase price
$2,500,000 purchase price
Note: These figures are for illustration only. Always use the official calculators and your lawyer’s closing statement for the final amount.
If you are an eligible first-time buyer, you may qualify for both a provincial LTT rebate and a City of Toronto municipal LTT rebate. Together, these can reduce your total cost at closing.
Eligibility generally depends on factors like your citizenship or permanent resident status, and that you have never owned a home anywhere in the world. You must also meet documentation and timing requirements. Your lawyer can help you complete the required declarations and apply on closing.
Some transfers are exempt or qualify for relief in specific situations. Common examples include transfers between spouses, certain transfers related to a separation agreement, transfers due to death, and some corporate reorganizations or gifts. Each category has its own rules and proof requirements. Your lawyer will confirm how the law applies to your situation and what documents you need.
Non-resident or foreign buyer taxes are separate from land transfer taxes. The Province of Ontario has, at times, applied an additional tax on certain purchases by non-residents. The scope and rate can change, so it is important to rely on the province’s current guidance. Review the latest information on Ontario’s page for non-resident taxes: Ontario non-resident speculation tax.
LTT can also apply to assignments of agreements, depending on how the deal is structured and whether consideration is paid. If you are buying a new construction home or condo, HST may apply to the purchase price and there may be separate HST rebate programs. LTT is separate from HST, so paying HST does not replace LTT. Ask your lawyer to review how these pieces interact in your specific purchase.
Land transfer tax is a major closing cost. Plan ahead so you are not scrambling at the finish line. Here is a simple checklist:
Can you avoid Toronto’s LTT? In a typical arm’s-length purchase inside the City of Toronto, you should expect to pay both municipal and provincial LTT unless you qualify for a specific exemption or a first-time buyer rebate.
Do sellers pay LTT? No. The tax is charged on the transfer to you as the buyer. Sellers do not pay LTT directly, though buyer closing costs can influence offers and negotiations.
Does LTT apply to condos, houses, assignments, and private deals? Yes, LTT applies to most transfers of land interests, including freehold and condo properties, and often applies to assignments and private purchases. The details can affect the tax base, so have your lawyer review your agreement.
Is LTT refundable if a deal falls through? If a transfer never registers, LTT is not charged. If tax was paid on a registered transfer and later an exemption applies, there may be a path to a refund or reassessment. Your lawyer will guide you on filings and timelines.
Your lawyer’s closing package typically includes the exact LTT calculation, declarations needed for rebates, and the remittance on your behalf. They also ensure you meet deadlines and file the right forms. This is one reason it helps to bring your lawyer into the process early.
When you understand Toronto’s land transfer tax, you can set a realistic budget, spot rebate opportunities, and move to closing with confidence. If you want help estimating your costs for a specific property type, from a downtown condo to a family home in North York or Vaughan, reach out. You will get clear numbers, step-by-step guidance, and a steady hand from first tour to keys.
Ready to plan your purchase with clarity? Connect with Unknown Company to get a tailored LTT estimate, current listings, and smart next steps.
From understanding market trends to mastering effective negotiation strategies, Sam’s sophisticated approach ensures you make informed decisions every step of the way.
