Land Transfer Tax CalculatorHelpful Info
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When you buy land or an interest in land in Ontario, you pay Ontario’s land transfer tax. Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
Who pays land transfer tax?
When you acquire a property or land, you pay land transfer tax to the province when the transaction closes.
Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.
In some cases, land transfer tax is based on the fair market value of the land, for example, where:
- the transfer of a lease with a remaining term that can exceed 50 years
- the transfer of land is from a corporation to one of its shareholders, or
- the transfer of land is to a corporation, if shares of the corporation are issued.
Land Transfer Tax Calculator
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If you are a first-time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.
Other land taxes
Local municipalities charge a tax on the residential or business property you own. If you have questions about municipal property tax, contact your local municipality. If your property is located in an unorganized territory (an area without municipal organization) of Ontario, property tax is collected through the provincial land tax program administered by the Provincial Land Tax Office in Thunder Bay.
If you buy property in the City of Toronto, you may also pay the City of Toronto’s own municipal land transfer tax.
Harmonized sales tax
The harmonized sales tax (HST) applies to newly constructed homes or substantially renovated homes, but does not apply to resale homes. Buyers of new homes may receive a rebate of up to $24,000 of the provincial portion (8%) of the HST. If you have any questions about the HST rebate please contact the Canada Revenue Agency at 1 800 959-1953.
Read: GST/HST Housing Rebate
Land transfer tax rates
The tax rates calculated on the value of the consideration are:
- 0.5% up to and including $55,000
- 1% above $55,000 up to and including $250,000
- 1.5% above $250,000
- 2% above $400,000 where the land contains one or two single family residences.
The land transfer tax rate is the same for residents and non-residents of Canada.
Calculating the tax amount
Use the table below to calculate land transfer tax.
- Residential property: land that contains one or two single family residences
- VC: Value of the consideration for the conveyance or disposition
- LTT: Land transfer tax payable
Table to calculate land transfer tax.
For the Value of the Consideration Formula
up to and including $55,000 LTT = VC × 0.005
above $55,000 and up to $250,000 LTT = (VC × 0.01) – $275
above $250,000, for property other than residential LTT = (VC × 0.015) – $1,525
above $250,000 up to $400,000, for residential property LTT = (VC × 0.015) – $1,525
for residential property above $400,000 LTT = (VC × 0.02) – $3,525
Vacant lot with a construction contract
Where a construction contract is entered into as part of the arrangement relating to the purchase of a vacant lot or lots, the value of the consideration is calculated on the:
- total cost of the lot, plus
- cost of construction contract