When you buy a home in Ontario, you pay land transfer tax when the transfer is registered. The tax is marginal: each rate applies only to the part of the price inside its bracket, not to the whole price.
The provincial brackets
| Part 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 | 2.5% |
A worked example: $500,000
The tax on a $500,000 purchase is $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000, and $2,000 on the last $100,000. That totals $6,475.
The first-time buyer rebate
Eligible first-time buyers can get a provincial rebate of up to $4,000. It never reduces the tax below zero. On the $500,000 example, a first-time buyer pays $2,475 after the rebate.
Toronto adds a municipal tax
Toronto’s municipal land transfer tax uses the same brackets as the province up to $3,000,000, so a $500,000 purchase in Toronto pays a further $6,475 before rebates. From April 1, 2026, higher rates apply above $3,000,000: 4.40% to $4 million, 5.45% to $5 million, 6.50% to $10 million, 7.55% to $20 million and 8.60% above. First-time buyers in Toronto can also get a municipal rebate of up to $4,475. Source: City of Toronto.
Non-resident buyers
Some non-resident buyers pay an extra non-resident speculation tax of 25%. Read the Ontario guide before you assume it does or does not apply to you.
Use the numbers with care
The land transfer tax calculator works out the provincial and Toronto tax and the rebates at any price, and the affordability calculator adds them to the cash you need at closing. Lenders and lawyers confirm the final amount on closing day.
Try the land transfer tax calculator →
Official source
Ontario · Calculating land transfer tax
This guide explains general rules. Confirm your figures with your lender, lawyer, or the official source before you act.