Ontario Land Transfer Tax (2026): Brackets, the $4,000 First-Time Refund, and Toronto's Second Tax

Short answer: Ontario charges land transfer tax on the value of the consideration when land changes hands, and the buyer pays it at registration. The provincial schedule is 0.5 percent on the first $55,000, 1 percent on the part from $55,000 to $250,000, 1.5 percent on the part from $250,000 to $400,000, and 2 percent on the part above $400,000. A property that contains one or two single-family residences pays 2.5 percent on the part above $2,000,000. On $400,000 the provincial tax is $4,475. On $600,000 it is $8,475. On $1,000,000 it is $16,475. Eligible first-time buyers can claim a provincial refund of up to $4,000. Buy inside the City of Toronto and a second tax, the Toronto municipal land transfer tax, applies on the same purchase, with a separate first-time buyer rebate of up to $4,475. Run your own price on the Ontario Land Transfer Tax Calculator as you read.

By Finance Editorial Desk | October 15, 2026

Educational only, not legal or tax advice. Rates, rebates, and eligibility come from the Ontario Ministry of Finance and the City of Toronto pages named in the sources section, read on the date above. Your real estate lawyer calculates the actual amount for your transaction, because the value of the consideration, exemptions, and rebate eligibility all turn on the details of your deal.

1. What the tax is, and when it is paid

Land transfer tax is a provincial tax on a conveyance of land in Ontario. In a normal purchase, the tax base is the value of the consideration: the price paid for the property, plus amounts the buyer takes on as part of the deal, such as an assumed liability. On most home purchases the value of the consideration is simply the purchase price, which is why every example in this guide uses the price as the base. Newly built homes are an exception worth flagging early: the Ministry of Finance has a separate page on how the value of the consideration is determined for new homes, where upgrades and other amounts can enter the calculation, and federal and provincial sales tax on a new home is a separate cost on top of land transfer tax.

Three timing facts shape how buyers should budget for it:

• The buyer pays it. In a standard arm's length purchase the tax falls on the purchaser, not the seller.
• It is due when the transfer is registered, which is closing day. It is cash needed at closing, separate from the down payment.
• It sits outside the mortgage. Your lender advances mortgage money against the purchase. The transfer tax is part of the cash you bring to close, alongside the down payment and the rest of your closing costs. A buyer who has exactly enough saved for a down payment and nothing for closing costs does not have enough saved.

Some transfers are exempt under the provincial rules, and some buyers owe additional taxes covered in section 7. Treat the schedule below as the general purchase case, and let your lawyer confirm your specific transaction.

2. The Ontario brackets

Each rate applies only to the slice of the price inside its bracket. Nothing in this schedule ever taxes the whole price at the top rate. A $1,000,000 purchase does not pay 2 percent on $1,000,000; it pays four smaller calculations added together.

The last bracket needs its condition stated plainly. The 2.5 percent rate above $2,000,000 applies to properties with at least one and not more than two single-family residences. Other properties continue at 2 percent on the whole amount above $400,000. Most houses, semis, townhouses, and condos a household buys for itself fall in the one-or-two-residence case.

Adding the brackets up at common prices gives the planning table below. These are provincial tax amounts for an Ontario purchase outside Toronto, before any refund, computed from the schedule above.

Two patterns in that table are worth using. First, between $400,000 and $2,000,000, every extra $100,000 of price adds exactly $2,000 of provincial tax, because that whole range sits in the 2 percent bracket. Comparing two homes $50,000 apart in that range means comparing $1,000 of extra tax. Second, the effective rate keeps climbing toward 2 percent as the price rises, because the cheap early brackets get diluted. There is no price at which the tax jumps all at once. Crossing $400,000 by one dollar taxes that one dollar at 2 percent, not the whole purchase.

3. One purchase worked in full: $600,000 outside Toronto

This is the same labeled example the calculator page uses, so you can check the guide against the tool line by line. The purchase is a $600,000 home elsewhere in Ontario, not in Toronto, and the buyer is not a first-time buyer, so no refund applies yet.

If this buyer qualifies for the full first-time buyer refund in section 4, the refund is $4,000 and the net provincial tax is $4,475. If the same home is inside Toronto, section 5 doubles the calculation before rebates: the municipal tax on $600,000 is another $8,475, the city rebate for an eligible first-time buyer is up to $4,475, and the combined net tax for that buyer is $4,475 provincial plus $4,000 municipal, which is $8,475 in total. The coincidence in that last line is arithmetic, not a rule: at this one price, the combined tax after both rebates happens to equal the single provincial tax before rebates.

4. The first-time buyer refund: up to $4,000 back

Since January 1, 2017, the maximum provincial refund for an eligible first-time buyer is $4,000. On a purchase at or under $368,000, the refund covers the whole provincial tax: the tax on $368,000 is $3,995, and no tax is payable by a qualifying buyer on the first $368,000 of the value of the consideration. Above that price, the refund is capped and the buyer pays the difference. At $400,000 the tax is $4,475, the refund is $4,000, and the buyer pays $475. At $600,000 the buyer pays $4,475 net, as section 3 showed.

Eligibility is stricter than the everyday meaning of first-time buyer. The Ministry of Finance conditions are:

• At least 18 years old.
• A Canadian citizen or permanent resident of Canada. A buyer who becomes one within 18 months after the transfer can apply within that window.
• Never owned a home, or an interest in a home, anywhere in the world, at any time. How the earlier home was acquired does not matter. A home received by gift or inheritance counts the same as a home bought.
• The spouse rule. If the buyer has a spouse, the spouse cannot have owned a home or an interest in one anywhere in the world while they were the buyer's spouse. If the spouse did, no refund is available to either spouse. A spouse who owned a home before becoming the buyer's spouse is treated differently, and a qualifying buyer may be able to claim in proportion to that spouse's interest, subject to the citizenship condition the Ministry sets out.
• Occupy the home as a principal residence within nine months of the transfer.
• The home must be an eligible home, which covers the normal residential range: detached and semi-detached houses, townhouses, condominium units, duplexes, triplexes and fourplexes, certain mobile and manufactured homes, co-op shares bought to occupy a unit, and a partial ownership interest bought to occupy a unit in the property.
• You cannot re-qualify. A buyer who has owned before does not become a first-time buyer again under this program, even after years of renting. The Ministry notes that this definition can differ from federal first-time buyer programs such as the Home Buyers' Plan, so qualifying for one program says nothing about the other.

Two mechanics matter for mixed purchases. First, the refund is reduced when one of the purchasers is not a first-time buyer: it is proportionate to the interest acquired by the buyers who do qualify. A parent and adult child who buy 50/50, where only the child qualifies, produce a refund of at most 50 percent of $4,000, which is $2,000. Second, there is a narrow trustee case: where a parent is on title only because a lender insisted, and the parent acquired no beneficial interest, the Ministry can accept the parent as a trustee for the child and the child can still qualify, with evidence of the trust submitted. That is a file-your-lawyer-builds case, not a box to tick on your own.

Claiming is normally built into closing. Claimed at registration, electronically or by the paper affidavit, the refund offsets the tax payable so the buyer never advances the $4,000. If it is not claimed at registration, the full tax is paid and a claim goes to the Ministry of Finance, online or by affidavit with supporting documents; no interest is paid on the refund, and the application deadline is 18 months after registration. Applications are subject to audit.

5. Toronto: the second tax

Toronto is the one Ontario municipality with its own land transfer tax. The municipal land transfer tax, MLTT, has applied since February 1, 2008 to purchases of property in the City of Toronto, in addition to the provincial tax. It does not replace the provincial tax and it does not apply in the surrounding regions: a purchase in Vaughan, Markham, Mississauga, or Brampton pays the provincial tax only.

Up to $2,000,000, the city schedule for homes with one or two single-family residences matches the provincial schedule in section 2, so at ordinary prices the Toronto tax is the same number computed twice. The City of Toronto works a $1,000,000 example the same way: city MLTT of $16,475 plus provincial tax of $16,475, for $32,950 combined before rebates. Two city-specific amounts sit on top of that:

• A separate first-time buyer rebate of up to $4,475. The $4,475 equals the municipal tax on a $400,000 purchase, so an eligible first-time buyer pays no MLTT at or below that price. The city eligibility conditions track the provincial ones: at least 18, occupy as a principal residence within nine months, never owned a home or an interest in one anywhere in the world, the same spouse condition, and Canadian citizenship or permanent residence, with the same 18-month route for a buyer who gains that status after closing. The city rebate is for newly built and resale residential properties; it does not apply to commercial, industrial, or multi-residential properties.
• An administration fee of $102.56 plus HST on each MLTT transaction, with a separate refund-processing fee where a rebate is claimed after registration. The fee does not apply to fully exempt transactions and to nominal-value transactions under the threshold the city publishes.

Because the two rebates stack, an eligible first-time buyer in Toronto can receive up to $8,475 back in total: $4,000 provincial plus $4,475 municipal. At higher prices the rebates become a smaller share of a bigger bill. Worked in full, labeled hypothetical: an $850,000 Toronto purchase carries $13,475 of provincial tax and $13,475 of MLTT. An eligible first-time buyer subtracts $4,000 and $4,475 and pays $18,475 combined. A buyer who is not a first-time buyer pays the full $26,950. Run both layers together on the Toronto Land Transfer Tax Calculator, which models the provincial and municipal schedules and both rebates.

6. Toronto above $3,000,000: the April 1, 2026 graduated rates

On December 17, 2025, Toronto City Council passed graduated MLTT rates for high-value residential properties containing one or two single-family residences, effective April 1, 2026. The city schedule now runs:

Properties that are not one-or-two-single-family residences keep the simpler city schedule: the same first three brackets, then 2.0 percent on everything above $400,000.

Worked in full, labeled hypothetical: a $4,000,000 Toronto home with one single-family residence, closing on or after April 1, 2026, with no rebate. The MLTT is $275 plus $1,950 plus $2,250 plus $32,000 on the slice to $2,000,000, plus $25,000 at 2.5 percent on the slice to $3,000,000, plus $44,000 at 4.40 percent on the slice to $4,000,000, for a city tax of $105,475. The provincial tax on the same purchase is $86,475, using the 2.5 percent provincial bracket above $2,000,000. Combined land transfer taxes are $191,950, before the city administration fee. One limit to state directly: the calculators on this site model the city schedule up to the 2.5 percent bracket above $2,000,000 and do not apply the April 2026 graduated rates above $3,000,000. For a Toronto purchase above $3,000,000, use the table above for a planning estimate and get the closing figure from your lawyer.

7. Two separate taxes that are not land transfer tax

Two other charges are routinely confused with this one, and both can dwarf it.

Ontario Non-Resident Speculation Tax (NRST). Ontario charges 25 percent, effective October 25, 2022, on residential property anywhere in the province bought by foreign nationals, foreign corporations, and taxable trustees, on land containing at least one and not more than six single-family residences. It applies in addition to land transfer tax, on the same value of the consideration. Exemptions and rebates exist for defined cases, including a rebate route for a buyer who becomes a permanent resident within four years. This guide does not work NRST examples, because eligibility, exemptions, and transitional rules decide most real cases. Any buyer who is not a Canadian citizen or permanent resident should get advice before signing, not at closing.

Toronto Municipal Non-Resident Speculation Tax (MNRST). Since January 1, 2025, Toronto has charged its own 10 percent tax on the purchase price for foreign buyers of certain residential properties in the city, in addition to MLTT and in addition to the provincial NRST. A foreign buyer of a Toronto home can therefore face three separate taxes on one purchase. The first-time buyer rebates in sections 4 and 5 do not reduce either speculation tax.

Neither speculation tax applies to a Canadian citizen or permanent resident buying a home to live in, which is the reader this guide's examples assume.

8. A cash-to-close worksheet

Land transfer tax surprises buyers because it arrives in the same week as every other closing cost and cannot be spread over the mortgage term. Fill this worksheet in with your own quotes before you set an offer ceiling. Amounts other than the tax itself are deliberately left blank: legal fees, registration charges, title insurance, and appraisal costs are quoted per transaction, and any standard figure printed here would be a guess dressed as data.

Then run the decision the other way: fix the total cash you actually have, subtract every non-tax line, and the remainder is the most land transfer tax you can carry, which maps back to a price ceiling through the table in section 2 or the Ontario calculator. Buyers who do this in reverse rarely get a closing-day surprise. The companion CMHC insurance guide covers the other large closing-adjacent cost for buyers with less than 20 percent down, and the mortgage stress test guide covers the qualifying-rate side of the same purchase.

9. Mistakes checklist

• Using the top rate on the whole price. At $600,000 the tax is $8,475, not 2 percent of $600,000, which would be $12,000. Brackets tax slices, not totals.
• Budgeting one tax in Toronto. A Toronto purchase pays the provincial tax and the MLTT. At $1,000,000 that is $32,950 combined before rebates, not $16,475.
• Assuming the refund because you have not bought in Canada. The test is ownership of a home or an interest in one anywhere in the world, at any time, however acquired. An inherited share years ago can decide the claim.
• Ignoring the spouse condition. A spouse who owned a home while married to or in a spousal relationship with the buyer removes the refund for both spouses.
• Claiming the full refund on a mixed purchase. When a co-buyer does not qualify, the refund shrinks in proportion to the qualifying buyers' interests. The parent-and-child case in section 4 caps at $2,000, not $4,000.
• Missing the nine-month occupancy condition. The buyer must occupy the home as a principal residence within nine months of the transfer.
• Letting the 18-month claim window close. A refund not claimed at registration must be applied for within 18 months of registration, and no interest is paid on it.
• Treating the April 2026 Toronto rates as a detail. Above $3,000,000 in Toronto the city schedule steepens sharply, and tools that stop at 2.5 percent, including the calculators on this site, understate the city tax.
• Signing as a non-resident without advice. The provincial NRST at 25 percent, and Toronto's MNRST at 10 percent, are priced before closing or not at all. Closing day is too late to discover either.

10. Frequently asked questions

How much is land transfer tax on a $500,000 home in Ontario? $6,475 provincially: $275 plus $1,950 plus $2,250 plus $2,000 on the $100,000 slice above $400,000. An eligible first-time buyer pays $2,475 after the $4,000 refund. In Toronto, add the same $6,475 as MLTT before the city rebate.

Do first-time buyers pay land transfer tax in Ontario? They pay the tax net of a refund of up to $4,000, if they meet every condition in section 4. At $368,000 or less the refund covers the whole provincial tax. At $400,000 the buyer pays $475. Toronto first-time buyers can also claim up to $4,475 against the municipal tax, for $8,475 combined.

Is land transfer tax based on the purchase price? It is based on the value of the consideration, which on a normal purchase is the purchase price, plus amounts such as liabilities the buyer assumes as part of the deal. New homes have their own Ministry guidance on what enters the value of the consideration.

Can land transfer tax be added to the mortgage? Plan as if it cannot. The tax is payable at registration on closing day, out of the cash you bring to close. Your mortgage advance is calculated on the purchase, and closing costs including this tax come from your own funds. The worksheet in section 8 budgets it that way.

Does every Ontario city charge a second land transfer tax? No. Toronto is the exception, with MLTT since 2008. Purchases elsewhere in Ontario, including the rest of the Greater Toronto Area outside the City of Toronto, pay only the provincial tax.

What changed in Toronto on April 1, 2026? Graduated MLTT rates took effect for high-value residential properties with one or two single-family residences: 4.40 percent on the slice from $3,000,000 to $4,000,000, rising in steps to 8.60 percent above $20,000,000. Below $3,000,000 the city schedule is unchanged. Section 6 has the full table and a $4,000,000 worked example.

What if a parent helps with the down payment and goes on title? The refund is reduced in proportion to any interest held by a buyer who is not a first-time buyer. There is a narrow exception where the parent is on title only at a lender's insistence, holds no beneficial interest, and the trust arrangement is evidenced to the Ministry. Your lawyer needs to set that up before closing, not repair it after.

Are there taxes on top of land transfer tax for foreign buyers? Yes, potentially two: Ontario's Non-Resident Speculation Tax at 25 percent provincewide, and Toronto's Municipal Non-Resident Speculation Tax at 10 percent inside the city, each with its own exemptions and rebates. Neither is reduced by the first-time buyer refund or rebate. Section 7 gives the scope of both.

11. Related reading

• Ontario Land Transfer Tax Calculator - enter a price, first-time buyer status, and Toronto status, and get the bracket total with rebates applied.
• Toronto Land Transfer Tax Calculator - the provincial and municipal layers modeled together.
• Canadian Land Transfer Tax Calculator - compare Ontario with British Columbia and other provincial closing taxes.
• CMHC Mortgage Insurance in Canada - the premium math for buyers with less than 20 percent down, and how it interacts with the same closing budget.
• First Home Savings Account in Canada - the $8,000-a-year account that builds the down payment this tax is paid alongside.
• Mortgage Calculator - the monthly payment that follows the closing costs worked here.

12. Sources

• Ontario Ministry of Finance, Land Transfer Tax: the tax applies to conveyances of land in Ontario, is calculated on the value of the consideration, and is charged in brackets of 0.5 percent on the first $55,000, 1 percent to $250,000, 1.5 percent to $400,000, 2 percent above $400,000, and 2.5 percent above $2,000,000 for properties containing one or two single-family residences (ontario.ca/document/land-transfer-tax, including the Calculating Land Transfer Tax page).
• Ontario Ministry of Finance, Land Transfer Tax Refunds for First-Time Homebuyers: maximum refund of $4,000 from January 1, 2017, no tax payable by qualifying buyers on the first $368,000, eligibility conditions including age 18, citizenship or permanent residence, no prior ownership of a home or interest in a home anywhere in the world, the spouse condition, occupation as a principal residence within nine months, proportionate reduction for non-qualifying co-purchasers, claiming at registration or by application within 18 months (ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers).
• City of Toronto, Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax, Rates and Fees: MLTT in addition to the provincial tax since February 1, 2008, the bracket schedule including the graduated rates for high-value one-and-two-single-family residences effective April 1, 2026 (4.40 percent from $3,000,000 to $4,000,000 rising to 8.60 percent above $20,000,000), the $102.56 plus HST administration fee, and the 10 percent Municipal Non-Resident Speculation Tax effective January 1, 2025 (toronto.ca, municipal land transfer tax rates and fees page, date modified April 7, 2026).
• City of Toronto, Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax, Rebate Opportunities: first-time home buyer rebate of up to $4,475 for newly constructed and resale residential properties, with eligibility conditions matching the age, nine-month occupancy, no-prior-ownership-anywhere, spouse, and citizenship or permanent residence conditions (toronto.ca, municipal land transfer tax rebate opportunities page).
• Ontario Ministry of Finance, Non-Resident Speculation Tax: 25 percent effective October 25, 2022, expanded provincewide March 30, 2022, applied on the value of the consideration in addition to land transfer tax, for purchases by foreign nationals, foreign corporations, and taxable trustees of land containing at least one and not more than six single-family residences (ontario.ca/document/non-resident-speculation-tax).