Ontario charges land transfer tax on almost every home purchase in the province, and you pay it in cash when the sale closes. On a $600,000 condo the bill is $8,475. On a $1,500,000 house it is $26,475. First-time buyers can get back up to $4,000 of it.
This article walks through how the provincial tax is worked out, who gets the refund, and where the cash usually comes from. Toronto buyers pay a second, separate city tax on top of this one. That one gets its own article, and the link to the Toronto MLTT calculator is below when it matters.
What the provincial tax is
Land transfer tax is a one-time tax the province collects when land or a home changes hands. The buyer pays it, not the seller. The amount depends on the value of what you give for the property, and for most purchases that means the price on the agreement plus any mortgage debt you take over.
It has nothing to do with the property tax you pay every year. Property tax is billed on assessed value for as long as you own the place. Land transfer tax is charged once, at the moment of transfer, and never again unless you buy something else.
The tax is due when the transfer is registered. If the transfer isn’t registered within 30 days of closing, the payment has to reach the province within 30 days after closing. In a normal purchase your lawyer handles this. The money moves through the lawyer’s trust account together with the rest of your closing funds, and the lawyer files the tax with the registration.
You’ll see the figure on the statement of adjustments your lawyer prepares a few days before closing. If the number on that statement doesn’t match your own arithmetic, ask why. There may be a good reason, such as a credit or a different value of consideration, but it takes one email to find out.
The five brackets for 2026
The rates apply in slices, the same way income tax brackets do. Only the part of the price that falls inside a slice is taxed at that slice’s rate. Buying a house for $1,200,000 doesn’t mean the whole amount is taxed at 2%.
| Part of the 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 (one or two single-family residences) | 2.5% |
The last row is narrower than it looks. The 2.5% rate applies only to homes that hold one or two single-family residences. For other property types, such as a larger apartment building, the rate stays at 2% above $400,000.
Some quick maths helps. The first $400,000 of any price costs the same amount every time. That is $275 plus $1,950 plus $2,250, which comes to $4,475. Every extra dollar up to $2,000,000 then adds two cents of tax.
The bracket amounts are also the same across the province. A buyer in Ottawa, Hamilton or Sudbury uses the same table as a buyer in Toronto. Toronto is the only city that adds its own tax on top.
A $600,000 condo, slice by slice
Take a condo bought for $600,000 and work through the slices in order.
- $55,000 at 0.5% gives $275.
- $195,000 (up to $250,000) at 1.0% gives $1,950.
- A further $150,000 (up to $400,000) at 1.5% gives $2,250.
- Then $200,000 (up to $600,000) at 2.0% gives $4,000.
Add them and the provincial tax is $8,475. That is about 1.4% of the price. As a rule of thumb, the effective rate on homes between $400,000 and $2 million lands between 1.1% and 1.9%, and it creeps upward as the price rises.
Now a shortcut you can use for any price between $400,000 and $2,000,000. Take 2% of the price and subtract $3,525. For $600,000 that is $12,000 minus $3,525, which is $8,475 again. The $3,525 is what the lower brackets save you compared with taxing everything at 2%.
A $1,500,000 house
A detached house at $1,500,000 uses the same first three slices, which total $4,475. The remaining $1,100,000 sits in the 2% bracket and adds $22,000. The provincial bill is $26,475.
Check it with the shortcut. Two percent of $1,500,000 is $30,000, and $30,000 minus $3,525 is $26,475. It matches.
Above $2,000,000 the extra half point starts. A $2,500,000 home pays $36,475 on the first $2,000,000 (that is $4,475 plus $32,000) and then 2.5% of the remaining $500,000, which is $12,500. The total is $48,975.
Both the provincial and the city taxes go up with the price, so a buyer in Toronto should run both numbers before making an offer. For a purchase at $1,000,000 the provincial amount is $16,475, and the Toronto amount is also $16,475. Together that is $32,950 of closing cost before legal fees, insurance or moving. You can test any price in the land transfer tax calculator.
Bills at common prices
Most people want a number quickly, so here are the provincial amounts at a few round prices. They come straight from the brackets above, with no refund applied.
| Purchase price | Provincial land transfer tax |
|---|---|
| $400,000 | $4,475 |
| $500,000 | $6,475 |
| $800,000 | $12,475 |
| $1,000,000 | $16,475 |
| $2,000,000 | $36,475 |
| $3,000,000 | $61,475 |
Look at how the steps behave. Between $400,000 and $2,000,000, each extra $100,000 of price adds exactly $2,000 of tax. That makes negotiating easy to price. Paying $25,000 more for a house costs another $500 at closing on top of the higher mortgage, and a $25,000 discount saves the same $500.
Past $2,000,000 each extra $100,000 adds $2,500. The jump from $2,000,000 to $3,000,000 is $25,000 of tax, which is a little over the total tax on a $1,000,000 house.
How the first-time buyer refund works
Ontario refunds up to $4,000 of the provincial tax to eligible first-time buyers. The refund covers the full tax on a home up to $368,000 or so. On more expensive homes it is a flat $4,000 off, however high the bill gets.
The province sets several conditions, and a few are easy to miss. You have to be at least 18. You can’t have owned a home or an interest in a home anywhere in the world, which includes another country. And if you have a spouse, that person can’t have owned a home anywhere in the world while the two of you were spouses.
That last rule catches people out. If your spouse owned a flat abroad before you met, the marriage doesn’t change that history, but the rule looks only at ownership during the marriage. Read the exact wording on the government page before you assume either way, and ask your lawyer about your own facts.
There is also an occupancy rule for the home itself, and the Toronto rebate has its own, which is that you must move in within nine months. Confirm the provincial timing with your lawyer, because the conditions have been adjusted over the years and the current text controls.
In practice, the refund is claimed through your lawyer at closing. They reduce the tax paid to the province by the refund amount, so you never front the money. If it wasn’t claimed at closing, you can still ask for it afterwards. The request has to be made within 18 months of the transfer date, with the registered documents, proof of payment, the agreement of purchase and sale and the statement of adjustments.
On the $600,000 condo, the refund brings the provincial bill from $8,475 down to $4,475. That’s a saving of a little under half. On the $1,500,000 house it takes $4,000 off $26,475 and leaves $22,475.
Ontario and Toronto together for a first-time buyer
A Toronto buyer who qualifies for both rebates gets a real discount, though the two rebates work differently. The province refunds up to $4,000. The city refunds up to $4,475, which happens to equal the city tax on a $400,000 home, so it wipes out the whole city tax on that price.
Here is a $1,000,000 condo in Toronto, both taxes, with both rebates. The province charges $16,475 and refunds $4,000, leaving $12,475. City tax is also $16,475, less its $4,475 rebate, which leaves $12,000. Together that comes to $24,475 instead of $32,950, a saving of $8,475.
At $600,000 the picture is milder in dollars but bigger in share. The province charges $8,475 and keeps $4,475 after the refund. The city charges the same $8,475 and keeps $4,000 after its own refund. A buyer pays $8,475 in all where the unrebated bill would be $16,950. That is exactly half.
The city rebate has its own conditions, and they are worth reading in full. You must be at least 18, move in as your principal residence within nine months, have never owned a home anywhere in the world, and be a Canadian citizen or permanent resident. The city applies to properties that are residential, so commercial and multi-residential purchases don’t qualify.
The city rebate is applied for separately from the provincial one, and the claim has to reach the city within 18 months of the transfer. A city processing fee applies. Your lawyer normally files it, so ask at the start whether that is part of the legal fee or an extra line on the bill.
Non-resident buyers pay another 25%
Ontario adds a Non-Resident Speculation Tax of 25% on top of land transfer tax. It has applied province-wide since October 25, 2022. It covers foreign nationals, foreign corporations and some trusts, so a citizen or permanent resident isn’t affected.
The tax is charged on the price, not on the land transfer tax. On a $600,000 condo it comes to $150,000. Together with the $8,475 of regular tax, that’s $158,475, and a buyer would need to know this before signing anything.
There is a way back. A buyer who becomes a permanent resident within four years of the purchase and lives in the home can claim a rebate. Refund requests have to be made within four years. Anyone in that position should speak to an immigration adviser and a lawyer, because the timing rules are strict. The Ontario NRST calculator shows the amount for any price.
Finding the cash for closing day
Land transfer tax is a closing cost, so you have to have it available on the day. In the usual case the mortgage advances against the purchase price and doesn’t cover taxes and fees. Your lender can confirm this for your own deal. Plan on the assumption that this money comes out of your own savings.
If you’re saving for it now, a few registered accounts can help. The First Home Savings Account lets you contribute $8,000 a year, up to $40,000 over a lifetime. Withdrawals for a qualifying first home are tax-free. The TFSA limit for 2026 is $7,000, and TFSA withdrawals are tax-free too. You can use the TFSA calculator to see how a monthly contribution grows by your closing date.
Line up the whole closing bill, since the tax is only one line of it. Legal fees, title insurance, the adjustments for property tax or condo fees the seller has prepaid, and the city tax if the home is in Toronto all come due together. The closing costs calculator puts them in one place.
Ask your lawyer for a draft statement of adjustments a few days before closing. That gives you time to move money without rushing. Funds often need to reach the lawyer’s trust account one or two business days ahead, so check the exact deadline with the office. Related tools: the Down Payment calculator, plus all our tax calculators.
Sources
- Ontario, Land transfer tax
- Ontario, Calculating land transfer tax
- Ontario, Land transfer tax refunds for first-time homebuyers
- City of Toronto, Municipal Land Transfer Tax
Common questions
How much is Ontario land transfer tax on a $600,000 home?
Can I put land transfer tax on my mortgage?
How long do I have to ask for the first-time buyer refund?
Is the Ontario tax the same in Toronto as elsewhere?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.