Education - Mortgages

Land Transfer Tax

What is Land Transfer Tax?

Land Transfer Tax is a tax paid to the provincial government on single-unit properties at the time of purchase.

How Much Tax do I pay?

Land Transfer Tax is calculated at a progressive rate of the purchase price paid. Rebates are available for first time home buyers. Talk to your lawyer for more information. To calculate the land transfer tax on your new purchase, click here.

What is the City of Toronto Tax?

In addition to the Provincial Land Transfer Tax, effective February 1, 2008 the City of Toronto introduced their own municipal land transfer tax on new purchases. For more information on the City of Toronto Municipal Land Transfer Tax, check out their website at http://www.toronto.ca/taxes/mltt.htm.

Do I have to pay both Taxes if I buy within Toronto?

Yes. On all purchases within the City of Toronto, you will be responsible for paying both Land Transfer Taxes. Rebates are available for first time home buyers, which can be discussed with your lawyer at the time of purchase. To calculate both taxes, click here.

When and How do I pay?

Land Transfer Tax is payable on closing day, generally when the land is registered into the new owners name. This transaction takes place between the lawyer and Teranet (Land Registration Service). Your lawyer will calculate the amount required for Land Transfer Tax and Toronto Land Transfer Tax if applicable, and will generally include this amount in the closing costs associated with your Mortgage transaction.

For more information on Land Transfer Tax, check out their website at http://www.rev.gov.on.ca/en/tax/ltt/.