Canada Land Transfer Tax Calculator
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When you buy a home, you might owe land transfer tax (LTT) or fees to the province or municipality where the house is located.
The amount varies by location (in some places, there are no taxes or fees at all), and is usually a percentage of the value of your home. This means your one-time land transfer tax bill can add up to hundreds or even thousands of dollars.
LTT is one of many closing costs you’ll need to account for when buying a home. Using our calculator to estimate the taxes or fees you’d pay on a purchase so you're prepared for your upcoming purchase.
In Ontario, you'll pay a land transfer tax based on your home's value. The rate tops out at at 2.5% for values more than $2 million.
- 0.5% of the first $55,000 of the home's value.
- 1.0% of any additional value between $55,000 and $250,000.
- 1.5% of any additional value between $250,000 and $400,000.
- 2.0% of any additional value between $400,000 and $2 million.
- 2.5% of any additional value that's more than $2,000,000 if the land contains no more than two single-family residences.
What is land transfer tax?
Land transfer tax may be collected by a province, municipality or both, depending on where you live. Every province has some version of a land transfer tax, although it may go by a different name. Quebec levies a “welcome tax,” for instance, while Alberta and Saskatchewan charge a “property registration fee.”
Land transfer tax varies by region, and some municipalities charge considerably higher transfer fees than others. However, if you are a first-time home buyer, you may be eligible to get some (or all) of your tax payment refunded.
Who pays land transfer tax?
In Canada, no matter the province or municipality, it’s the buyer that pays the land transfer tax, not the seller.
Land transfer tax is due as soon as the buyer takes possession of the property. Unlike property taxes, land transfer taxes must be paid in full as a one-time payment. They should be factored into the funds you set aside for closing costs.
Can you avoid land transfer taxes?
There are cases, like in Ontario, where first-time home buyers may be eligible for a partial or full refund of their land transfer taxes. Other situations where land transfer tax can be avoided include:
Purchasing a newly built home.
Transferring the property to a lineal descendent (i.e. parent to child).
Transferring a property between spouses.
Transferring a property from a person to a family business.
Transferring a farming property between family members.
Each province and municipality has its own rules regarding land transfer tax exemptions, so seek specific details from your local government and consider speaking to an expert, such as an accountant or tax specialist.
🔢 How to calculate land transfer tax on your own
Land transfer taxes are typically calculated as a percentage of the property’s estimated value, which often equates to its purchase price.
In many places, the percentage you’ll pay is higher for more expensive homes — similar to income tax brackets that charge a higher tax rate in higher tiers of income.
Here’s an example using a house in Ontario that costs $500,000. After buying this house you would pay:
0.50% on the first $55,000 of the price = $275
1% on the next $195,000 of the price = $1,950
1.5% on the next $150,000 of the price = $2,250
and 2% on the final $100,000 of the price = $2,000
Your total land transfer tax would be $6,475. If you’re a first time home buyer in Ontario, you might be eligible for a land transfer tax rebate of up to $4,000, which would reduce your land transfer tax bill to $2,475.
Frequently asked questions
How much is land transfer tax in Ontario?
How much is land transfer tax in Ontario?
How much land transfer tax you’ll pay in Ontario depends on how much you pay for your house. A home worth $500,000 would incur a land transfer tax of $6,475. A home worth $2 million would incur a land transfer tax of $36,475. If the home is in Toronto, you’ll pay an additional municipal land transfer tax.
When do I pay land transfer tax?
When do I pay land transfer tax?
You are required to pay land transfer tax when you buy a piece of real estate. It’s a closing cost that must be paid before taking possession of a property.
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Clay Jarvis
Clay Jarvis
Clay Jarvis