Ontario Land Transfer Tax Rates 2026
Ontario Land Transfer Tax (LTT) is paid when you buy property in Ontario. It is calculated on a marginal (graduated) basis — each bracket applies only to the portion of the purchase price within that bracket, exactly like income tax.
| Purchase Price Range | Marginal Rate | Cumulative Tax at Top of Bracket |
|---|---|---|
| First $55,000 | 0.5% | $275 |
| $55,001 – $250,000 | 1.0% | $2,225 |
| $250,001 – $400,000 | 1.5% | $4,475 |
| $400,001 – $2,000,000 | 2.0% | $36,475 |
| Over $2,000,000 | 2.5% | — |
Worked Example — $800,000 Home (Brampton, Mississauga, or other 905)
First $55,000 × 0.5% = $275
$55,001–$250,000 ($195,000) × 1.0% = $1,950
$250,001–$400,000 ($150,000) × 1.5% = $2,250
$400,001–$800,000 ($400,000) × 2.0% = $8,000
Total Ontario LTT = $12,475 — paid at closing through your lawyer.
Toronto Municipal Land Transfer Tax Rates 2026
If you are buying inside the City of Toronto boundary (not Etobicoke-as-905, not Scarborough-as-905 — the actual current City of Toronto), you pay a second full land transfer tax on top of the provincial one. Toronto MLTT uses the same graduated structure but with different bracket endpoints:
| Purchase Price Range | Toronto MLTT Rate | Cumulative Toronto MLTT at Top |
|---|---|---|
| First $55,000 | 0.5% | $275 |
| $55,001 – $400,000 | 1.0% | $3,725 |
| $400,001 – $2,000,000 | 1.5% | $27,725 |
| Over $2,000,000 | 2.0% | — |
Worked Example — $800,000 Toronto Condo (Toronto MLTT on top of Ontario LTT)
Ontario LTT = $12,475 (same as above)
Toronto MLTT: First $55,000 × 0.5% = $275
Toronto MLTT: $55,001–$400,000 ($345,000) × 1.0% = $3,450
Toronto MLTT: $400,001–$800,000 ($400,000) × 1.5% = $6,000
Toronto MLTT = $9,725
Total LTT for Toronto buyer = $12,475 + $9,725 = $22,200
vs. same home in Brampton/Mississauga: $12,475 (Ontario only). Toronto doubles your tax bill.
First-Time Buyer Rebates 2026
Ontario First-Time Buyer LTT Rebate — up to $4,000
First-time home buyers in Ontario receive a full rebate of Ontario LTT on the first $368,000 of a purchase price (since Ontario LTT on $368,000 equals exactly $4,000). For homes over $368,000, you still get the full $4,000 rebate applied against your total Ontario LTT — you just pay the portion above.
Toronto First-Time Buyer MLTT Rebate — up to $4,475
First-time buyers purchasing in the City of Toronto receive a separate Toronto MLTT rebate of up to $4,475. This applies on top of the Ontario rebate. Combined maximum for Toronto first-time buyers: $8,475 ($4,000 Ontario + $4,475 Toronto).
Rebate Qualification Rules (Both Ontario and Toronto)
- Canadian citizen or permanent resident at the time of purchase
- At least 18 years old
- Never owned a home anywhere in the world — not just in Ontario, not just in Canada
- Must occupy the home as principal residence within 9 months of closing
- If purchasing with a spouse/partner: neither of you can have owned a home anywhere in the world (for the Ontario rebate). Toronto's rebate has the same requirement.
- Applies to new construction, resale, and vacant land with a home to be built
First-Time Buyer — $800,000 home in Brampton
Ontario LTT gross: $12,475
First-time buyer rebate: − $4,000
Net Ontario LTT payable: $8,475 (saves $4,000 vs repeat buyer)
First-Time Buyer — $800,000 condo in Toronto
Ontario LTT gross: $12,475 → after $4,000 rebate = $8,475
Toronto MLTT gross: $9,725 → after $4,475 rebate = $5,250
Net total LTT payable (Toronto FTB): $13,725
vs. repeat buyer in Toronto at the same price: $22,200. Rebates save $8,475.
The Brampton / 905 Advantage
Every buyer purchasing outside the City of Toronto boundary — in Brampton, Mississauga, Vaughan, Milton, Halton Hills, Caledon, Hamilton — pays only Ontario LTT, not Toronto MLTT. At $800,000, that is $9,725 less in land transfer tax on closing day compared to buying the same property inside Toronto.
That $9,725 in 905 savings has to be funded from somewhere — in Toronto, it comes out of your cash at closing. It is real money that cannot be financed through your mortgage. If you are weighing a Toronto condo vs. a Brampton condo at similar price points, the LTT difference alone is a meaningful part of the equation.
When Is Land Transfer Tax Paid?
Land transfer tax is paid on closing day — the day you take possession. Your real estate lawyer collects it and remits it to the province (and to Toronto if applicable) when registering the deed in your name. You cannot defer it, put it on your mortgage, or pay it in installments. It must be in your lawyer's trust account before keys are handed over.
First-time buyer rebates are applied automatically at closing — you do not pay first and claim back. Your lawyer applies the rebate and you pay only the net amount.
Other Closing Costs to Budget
- Legal fees — $1,500–$2,500 for a standard purchase. More for complex transactions.
- Title insurance — $200–$400. Required by most lenders; protects against title fraud and survey issues.
- Home inspection — $400–$600. Technically optional but strongly recommended, especially in the 905 where many homes are 20–40 years old.
- CMHC mortgage default insurance — required if down payment is less than 20%. Ranges from 2.8% (10–14.99% down) to 4.0% (5–9.99% down) of the mortgage amount. Added to your mortgage principal, not paid at closing.
- Property tax adjustment — if the seller has prepaid property tax past the closing date, you reimburse them the proportional amount at closing.
- HST on new construction — resale homes have no HST. New construction includes HST but it is usually included in the purchase price (check your agreement).
As a rough guide for 905 buyers: budget 1.5%–2.5% of purchase price for total closing costs excluding LTT. On an $800,000 home in Brampton, that is $12,000–$20,000 out of pocket at closing, plus $12,475 in LTT (or $8,475 if first-time buyer). Total closing cash needed: roughly $20,000–$32,000 before your down payment.
Frequently Asked Questions
Find Your Home in the GTA
LTT is one number. Anu can walk you through the full closing cost picture for any specific property — and make sure you are not leaving rebates on the table. Call or submit below.