Ontario Land Transfer Tax Explained (2026 Brackets, Rebate, Toronto)
Ontario land transfer tax is $10,475 on a $700,000 home, or $6,475 for a first-time buyer. The 2026 brackets, the $4,000 rebate, and Toronto’s second tax.
Ontario charges land transfer tax on a sliding scale from 0.5% to 2.5% of the purchase price, paid by the buyer on closing. A $700,000 home pays $10,475. First-time buyers get up to $4,000 back, which brings that to $6,475. In Toronto a second, identical municipal tax applies, so the same house costs $20,950 in tax, or $12,475 for a first-time buyer.
Figures in this guide come from the CostToClose land transfer tax calculator, which uses the Ontario Ministry of Finance schedule and the City of Toronto's rates in force since 1 April 2026.
The 2026 brackets
Ontario's rates are marginal. Each slice of the price is taxed at its own rate, and the slices add up.
| Portion of purchase price | Rate |
|---|---|
| First $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% |
Source: Ontario Ministry of Finance, Land Transfer Tax. Unchanged since 2017; checked 14 September 2026.
Working through a $700,000 purchase: $275 on the first slice, $1,950 on the second, $2,250 on the third, and $6,000 on the $300,000 that falls in the 2% band. Total $10,475. Because the brackets are marginal, the effective rate on $700,000 is 1.5%, not 2%.
What the tax is at common prices
| Price | Ontario tax | First-time buyer | Toronto (total) | Toronto, first-time buyer |
|---|---|---|---|---|
| $300,000 | $2,975 | $0 | $5,950 | $0 |
| $500,000 | $6,475 | $2,475 | $12,950 | $4,475 |
| $700,000 | $10,475 | $6,475 | $20,950 | $12,475 |
| $1,000,000 | $16,475 | $12,475 | $32,950 | $24,475 |
| $1,500,000 | $26,475 | $22,475 | $52,950 | $44,475 |
| $2,500,000 | $48,975 | $44,975 | $97,950 | $89,475 |
Computed with the CostToClose calculator, 14 September 2026.
The first-time buyer refund
Ontario refunds up to $4,000 of the tax to first-time buyers. Because $4,000 is exactly the tax on a $368,000 home, buyers at or below that price pay nothing; above it they pay the tax less $4,000.
To qualify you must:
- be at least 18;
- have never owned a home, or an interest in one, anywhere in the world;
- have a spouse who has not owned a home while they were your spouse;
- occupy the home as your principal residence within nine months of closing;
- be a Canadian citizen or permanent resident (or become one within 18 months).
The refund is claimed at closing through your lawyer, so you never pay the full amount and wait. Note the "anywhere in the world" test: someone who owned a condo abroad ten years ago does not qualify, even though they would count as a first-time buyer for the FHSA or Home Buyers' Plan.
Toronto's second tax
Toronto is the only municipality in Ontario allowed to levy its own land transfer tax. The Municipal Land Transfer Tax mirrors the provincial brackets up to $3 million, then climbs steeply: 4.40% from $3 to $4 million, 5.45% to $5 million, 6.50% to $10 million, 7.55% to $20 million and 8.60% above that. Those upper rates took effect 1 April 2026 and apply to condos as well as houses. Toronto has its own first-time buyer rebate of up to $4,475.
The boundary is the City of Toronto itself. Scarborough, Etobicoke and North York are inside it; Mississauga, Vaughan, Markham and Pickering are not. A $1 million house pays $32,950 in Toronto and $16,475 across the road in Mississauga. Full detail in Why Toronto buyers pay land transfer tax twice.
Non-resident speculation tax
Foreign nationals, foreign corporations and taxable trustees buying residential property anywhere in Ontario pay an additional 25% of the price, on top of the regular tax. Most such purchases are currently blocked by the federal foreign-buyer ban, which runs to 1 January 2027, so in practice this affects a narrow set of exempt buyers such as certain work-permit holders.
Worked example from the calculator
A first-time buyer, $850,000 semi in Scarborough, 10% down:
| Item | Amount |
|---|---|
| Ontario land transfer tax | $13,475 |
| Toronto municipal land transfer tax | $13,475 |
| Ontario first-time buyer refund | −$4,000 |
| Toronto first-time buyer rebate | −$4,475 |
| Land transfer tax due on closing | $18,475 |
A repeat buyer on the same house would pay $26,950. Reproduce this.
What changes the number
- Being a first-time buyer: −$4,000 provincially, −$4,475 in Toronto.
- Which side of the Toronto boundary you are on: doubles the bill.
- Price above $2 million: the 2.5% band applies only to one- or two-unit residential; commercial and larger multi-unit stay at 2%.
- New build vs resale: the tax is the same; it is charged on the price excluding HST.
Frequently asked questions
How much is land transfer tax in Ontario on a $500,000 house?
$6,475 for a repeat buyer, or $2,475 for a first-time buyer after the $4,000 refund. In Toronto add a second $6,475, less a $4,475 municipal rebate for first-time buyers.
Is Ontario land transfer tax paid by the buyer or seller?
The buyer. It is collected by your lawyer and paid on closing; it cannot be added to the mortgage.
Does the first-time buyer refund apply to a condo?
Yes. The refund depends on the buyer, not the property type, as long as you occupy it as your principal residence within nine months.
Do I pay land transfer tax when I refinance or add my spouse to title?
Not on a refinance. Transfers between spouses are generally exempt when no money changes hands beyond assuming the mortgage; ask your lawyer, because the exemption has conditions.
Has the Ontario land transfer tax changed for 2026?
The provincial brackets have not changed since 2017. Toronto raised its rates on homes over $3 million effective 1 April 2026.
Sources
- Ontario Ministry of Finance, Land Transfer Tax — checked 14 Sept 2026
- Ontario Ministry of Finance, Land Transfer Tax Refunds for First-Time Homebuyers — checked 14 Sept 2026
- Ontario Ministry of Finance, Non-Resident Speculation Tax — checked 14 Sept 2026
- City of Toronto, Municipal Land Transfer Tax rates and rebates, effective 1 April 2026 — checked 14 Sept 2026
- CMHC, Prohibition on the Purchase of Residential Property by Non-Canadians Act — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It does not constitute legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before you rely on them.