Ontario Land Transfer Tax: How Much Will You Pay?

When you buy a home in Ontario, the province charges a one-time Land Transfer Tax (LTT) the moment the property changes hands. It's usually the single largest closing cost a buyer faces — often more than the lawyer, inspection and title insurance combined. This guide explains how much you'll pay, shows the exact brackets with real numbers, and covers the rebate that can save first-time buyers up to $4,000.

Key takeaways

• Ontario LTT is charged on a sliding (marginal) scale from 0.5% to 2.5% of the purchase price.
• It's a one-time tax paid by the buyer on closing day, separate from your down payment.
• First-time buyers can claim a provincial rebate of up to $4,000.
• Toronto buyers pay a second municipal land transfer tax on top of this one.
• On a $1,000,000 home, provincial LTT alone is $16,475 before any rebate.

What is Ontario land transfer tax?

Ontario's Land Transfer Tax is a provincial tax applied to the transfer of any property — the legal change of ownership from seller to buyer. As the buyer, you pay it on closing day through your lawyer, who remits it to the province. It is a one-time cost, not an annual one (that's property tax, which is different).

Because LTT is calculated as a percentage of the price, it grows quickly as homes get more expensive — which is why it dominates most buyers' closing-cost budget. The good news: the rate is tiered, so you only pay the higher percentages on the portion of the price that falls into each band.

The Ontario LTT rates (2026)

Ontario uses marginal brackets, just like income tax. Each slice of the purchase price is taxed at its own rate — you never pay the top rate on the whole amount.

Marginal means slice by slice

On a $300,000 home you pay 0.5% on the first $55,000, 1.0% on the next $195,000, and 1.5% only on the final $50,000 — not 1.5% on the whole price. Our step-by-step calculation guide walks through the arithmetic.

How much will you actually pay?

Here's the provincial LTT (before any rebate) at common Ontario price points. These figures are for the province only — if you're buying in the City of Toronto, you'll pay roughly the same amount again in municipal land transfer tax.

Want a precise figure for your price and situation? The HOMEH Closing Cost Calculator works out your land transfer tax and the rest of your closing costs in seconds.

The first-time buyer rebate

If you qualify as a first-time home buyer, Ontario gives you a rebate of up to $4,000 on the provincial land transfer tax. That fully covers the LTT on a home priced around $368,000, and reduces it on anything above that. To qualify, you must be at least 18, never have owned a home anywhere in the world, and (in most cases) your spouse must not have owned a home while you were married.

Claim it at closing

Your lawyer normally applies the rebate automatically so it's deducted on closing day — you don't have to pay the full amount and wait for a refund. For the full eligibility rules and the Toronto add-on, see our land transfer tax rebate guide and the first-time buyer guide.

How HOMEH helps you keep more

Land transfer tax is set by the government — there's no way around it. But the commission you'd normally pay on a purchase is a different story.

Get cashback that dwarfs your LTT

HOMEH gives eligible buyers the industry's highest Cashback Rebate — far more than any land transfer tax bill. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. Estimate yours with the cashback calculator, then budget the rest with the closing cost calculator.