Land Transfer Tax Ontario | 2026 Rates, How It Is Calculated, Who Pays and When

by Jonathan Colford

Ontario Buyer Guide

Land Transfer Tax Ontario | 2026 Rates, How It Is Calculated, Who Pays and When

Land transfer tax is one of the largest closing costs a buyer pays in Ontario. Here is how the rates work, a worked example at common York Region prices, who pays, when it is due and how first-time buyers can get money back.

Jonathan Colford | Sales Representative | eXp Realty Brokerage

Local insight from Jonathan Colford, York Region Real Estate Agent.

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Ontario land transfer tax is a one-time tax the buyer pays to the province when a home sale closes and the transfer is registered. It is based on the purchase price, it is paid through your lawyer, and on a typical York Region home it is a five-figure cost that has to be planned for before you make an offer.

Many buyers focus on the down payment and the mortgage and then discover the tax late in the process. This guide explains exactly how Ontario land transfer tax is calculated, who pays it, when it is paid, how it is paid, and what refunds exist. If you are buying in Toronto, there is a second municipal tax on top, which is covered in its own section below.

If you are still early in the process, start with our first-time home buyers guide for York Region and the article on mortgage pre-approval in 2026, then come back here to build your closing cost budget.

In short: the buyer pays Ontario land transfer tax. It is due when the transfer is registered at closing, your lawyer collects it from you and pays it, and eligible first-time buyers can recover up to $4,000. Toronto buyers pay an additional municipal tax.

Who pays

The buyer

The person acquiring the property pays land transfer tax. The seller does not pay it.

When it is due

At closing

The tax is payable when the transfer is registered, which happens on your closing date.

How it is paid

Through your lawyer

Your real estate lawyer collects the funds from you and pays the tax during electronic registration.

How Ontario land transfer tax is calculated

Ontario land transfer tax is calculated on the value of the consideration, which is mainly the purchase price. The tax is graduated, which means each slice of the price is taxed at its own rate. These are the provincial rates for agreements of purchase and sale signed after November 14, 2016.

Portion of the purchase price	Rate
Up to and including $55,000	0.5%
$55,000.01 to $250,000	1.0%
$250,000.01 to $400,000	1.5%
$400,000.01 to $2,000,000	2.0%
Over $2,000,000 (only when the land contains one or two single family residences)	2.5%

The Ontario Ministry of Finance publishes a shortcut for the same calculation. For a home with one or two single family residences, the tax equals the price multiplied by 0.02, minus $3,525, for any price from $400,000 up to $2,000,000. Above $2,000,000 it equals the price multiplied by 0.025, minus $13,525.

As an official reference point, the Ministry shows a $400,000 purchase as $275 on the first $55,000, plus $1,950 on the next $195,000, plus $2,250 on the next $150,000, for total land transfer tax of $4,475.

Land transfer tax examples at common York Region prices

The table below applies the provincial formula to a range of purchase prices. These are estimates for a home that is not eligible for a first-time buyer refund and is not subject to the non-resident speculation tax.

Purchase price	Ontario land transfer tax
$600,000	$8,475
$800,000	$12,475
$1,000,000	$16,475
$1,500,000	$26,475
$2,000,000	$36,475
$2,500,000	$48,975

A buyer in Aurora, Newmarket, East Gwillimbury, Georgina or King City pays only the provincial amount shown above. Toronto buyers pay the provincial amount and a separate City of Toronto tax. Use these figures for planning only, and ask your lawyer for the exact number once your price and closing date are firm.

The buyer pays land transfer tax, not the seller

When you acquire land or an interest in land in Ontario, you pay land transfer tax to the province. Land is defined broadly and includes the house itself, buildings still to be built, and fixtures such as built-in appliances and cabinetry.

The tax is normally based on the amount paid for the property, plus the amount of any mortgage or debt you assume as part of the deal. For a new build, the value also includes soft costs and the cost of upgrades, which is why a builder purchase can produce a higher tax base than the headline price. HST paid on the purchase price of a new home is not itself taxed.

If you are also selling, your own closing costs are different. Our guide to Ontario seller closing costs in 2026 covers what a seller budgets for.

Land transfer tax is paid at closing, through your lawyer

Ontario land transfer tax is payable when the transfer is registered. In practice, the process looks like this:

Your lawyer calculates the tax from the final purchase price and any adjustments to the value of the consideration.
Before closing, your lawyer sends you a statement of the funds required, which includes the balance of your down payment, land transfer tax, legal fees, disbursements and any adjustments.
You deliver those funds to your lawyer in the form your lawyer requests, commonly a bank draft or wire transfer, ahead of the closing date.
On closing day, your lawyer registers the transfer electronically. The registration system calculates the tax from the information entered and your lawyer pays it from the funds you provided.

Land transfer tax is generally a cash cost at closing rather than something added to your mortgage. Confirm with your lender and lawyer how your own file will work.

If a transfer is not registered within 30 days of closing, the Ministry of Finance requires a separate return and payment within 30 days after the closing date. This applies to certain beneficial interest transfers and is rare in a standard resale purchase.

First-time buyers can get back up to $4,000

Eligible first-time buyers can receive a refund of all or part of Ontario land transfer tax. For transfers on or after January 1, 2017, no tax is payable on the first $368,000 of the purchase price, and the maximum refund is $4,000. If your home costs more than $368,000, the refund is capped at $4,000.

To qualify for the Ontario refund, the Ministry of Finance requires that you:

Are at least 18 years old
Are a Canadian citizen or permanent resident
Have never owned a home or an interest in a home anywhere in the world, and your spouse has not owned one while being your spouse
Occupy the home as your principal residence within nine months of the transfer date

Most buyers claim the refund at registration, which means your lawyer reduces the tax payable on closing day. If it was not claimed then, you can apply to the Ministry within 18 months of the registration date. If you are buying with someone who is not a first-time buyer, the refund is reduced in proportion to the interest held by the qualifying buyer. Our first-time buyers resource page explains the other programs worth knowing about.

Toronto adds a second land transfer tax; York Region does not

The City of Toronto charges its own Municipal Land Transfer Tax in addition to the Ontario tax. Buyers in Aurora, Newmarket, East Gwillimbury, Georgina and King City do not pay a municipal land transfer tax, which is one reason total closing costs can be meaningfully lower in York Region than in Toronto at the same price.

Toronto also introduced higher graduated municipal rates for residential properties over $3,000,000, effective April 1, 2026. If you are comparing a Toronto purchase with one in York Region, ask for both totals before you decide.

Non-resident buyers pay an additional 25 percent

Ontario's Non-Resident Speculation Tax applies at 25 percent on the purchase of residential property anywhere in the province by foreign nationals, foreign corporations and taxable trustees. It is charged in addition to regular land transfer tax. Rebates may be available in limited situations, for example when a foreign national becomes a permanent resident within the time allowed. Anyone who is not a Canadian citizen or permanent resident should speak to a lawyer before signing an agreement.

Other ways land transfer tax can be reduced or refunded

Some transfers are exempt from land transfer tax, including certain transfers between spouses, certain transfers from an individual to their family business corporation, certain transfers of farmed land between family members, and certain life lease transfers. These are specific rules and each has conditions, so your lawyer should confirm eligibility before closing.

If you believe you overpaid, you can ask the Ministry of Finance for a refund. Requests generally must be made within four years of the date the tax was paid, and the first-time buyer refund has its own 18 month limit.

What to budget on top of land transfer tax

Land transfer tax is only one closing cost. A realistic buyer budget also includes legal fees and disbursements, title insurance, a home inspection, an appraisal if your lender requires one, adjustments for prepaid property taxes and utilities, and moving costs. Buyers of new construction should also plan for HST, development charges and similar items depending on the agreement.

If you are weighing property types, our comparison of condo versus freehold in York Region helps with the ongoing costs side of the decision, and our first-time buyer's guide to Newmarket shows how a full budget comes together in one community.

Questions to ask your lawyer before closing

What is my exact land transfer tax based on my final price and any adjustments?
Am I eligible for the first-time buyer refund, and will it be claimed at registration?
When do you need my closing funds, and in what form?
Does anything about my purchase, such as a new build, a trust, or a non-resident owner, change the tax?
What other disbursements and adjustments should I expect on the statement of adjustments?

Frequently asked questions

Who pays land transfer tax in Ontario, the buyer or the seller?

The buyer pays. Ontario land transfer tax is charged to the person acquiring the property and is paid when the transfer is registered at closing.

When is land transfer tax due?

It is payable when the transfer is registered. In a standard purchase that is on your closing date, and your lawyer collects the money from you shortly before then.

How is Ontario land transfer tax paid?

Your real estate lawyer collects the funds from you, typically by bank draft or wire, and pays the tax through the electronic land registration system when the transfer is registered.

How much is land transfer tax on a $1,000,000 home in Ontario?

The provincial tax is $16,475 before any first-time buyer refund. If the property is in the City of Toronto, a separate municipal tax applies as well.

Do first-time buyers pay land transfer tax in Ontario?

Eligible first-time buyers pay no tax on the first $368,000 of the price, and the refund is capped at $4,000. On more expensive homes they pay the balance.

Does Aurora, Newmarket or King City charge a municipal land transfer tax?

No. Only the Ontario land transfer tax applies in those communities. The City of Toronto is the municipality that charges its own tax.

Can I add land transfer tax to my mortgage?

It is generally paid in cash at closing rather than financed. Confirm the details with your lender and lawyer for your situation.

Is land transfer tax the same as property tax?

No. Land transfer tax is a one-time tax on the purchase. Property tax is an annual tax paid to your municipality.

Official resources

Rules, rebates and warranty coverage can change. Use official sources and obtain legal advice before signing.

Ontario: Land Transfer Tax Ontario: Calculating Land Transfer Tax Ontario: Land Transfer Tax Refunds for First-Time Homebuyers Ontario: Non-Resident Speculation Tax City of Toronto: Municipal Land Transfer Tax

This article provides general real estate information as of October 2026. Land transfer tax rates, refunds and eligibility rules may change. It does not provide legal, financial, mortgage, tax or accounting advice. Confirm your exact figures with your real estate lawyer and the official sources above before you buy.