How this calculator works
Land transfer tax is charged on the purchase price of a home, at a marginal rate for each band. Ontario charges 0.5% on the first $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2% from $400,000 to $2,000,000 and 2.5% above $2,000,000. Toronto is the only Ontario municipality with its own municipal land transfer tax. It uses the same bands up to $2,000,000, then 2.5% to $3,000,000, and from April 1, 2026 it adds 4.4% from $3,000,000 to $4,000,000, 5.45% to $5,000,000, 6.5% to $10,000,000, 7.55% to $20,000,000 and 8.6% above that. A first-time buyer can claim back up to $4,000 of Ontario tax and up to $4,475 of Toronto tax, each capped at the tax actually paid. The page assumes a single-family residence bought by one buyer, and does not model the non-resident speculation tax, the 2% rate that replaces 2.5% for property other than one or two single-family residences, leases, multi-unit rules, or the requirement that a first-time buyer be a Canadian citizen or permanent resident and occupy the home within nine months.
Formula
Ontario tax = the sum of each band's portion x its rate. Toronto tax = the same marginal calculation on the municipal bands. Rebate = min(tax charged, $4,000 in Ontario or $4,475 in Toronto) where the buyer is a first-time homebuyer. Total = Ontario tax + Toronto tax - both rebates.
Worked example
An $800,000 home in Toronto costs $12,475 in Ontario tax: $275 on the first $55,000, $1,950 to $250,000, $2,250 to $400,000 and $8,000 on the last $400,000. The Toronto tax is another $12,475. A first-time buyer claims $4,000 and $4,475 back, so the total payable is $16,475. Outside Toronto the same first-time buyer pays $8,475.
Frequently asked questions
Who pays land transfer tax?
The buyer, when the transfer is registered. It is usually handled by the lawyer or notary at closing and is separate from the property tax.
Who counts as a first-time homebuyer?
Someone at least 18 who has never owned a home anywhere in the world, whose spouse has not owned one while married to them, and who is a Canadian citizen or permanent resident and moves in within nine months.
Is the rebate paid in cash?
Usually it is applied at registration, reducing the tax due. If it is claimed afterwards, the application must be made within 18 months of the transfer, and Toronto charges a processing fee.
Does every municipality charge this tax?
No. Toronto is the only Ontario municipality with a municipal land transfer tax. Elsewhere only the Ontario tax applies.