When you buy a home in Ontario, land transfer tax (LTT) is one of the largest closing costs — often more expensive than legal fees. Here's exactly how it works in 2026.
Ontario LTT — How It's Calculated
Ontario LTT is calculated on the purchase price using progressive brackets:
| Price Portion | Rate | Tax on Bracket |
|---|---|---|
| First ,000 | 0.5% | |
| ,000 – ,000 | 1.0% | ,950 |
| ,000 – ,000 | 1.5% | ,250 |
| ,000 – | 2.0% | up to ,000 |
| Over ,000,000 | 2.5% | — |
Example: ,000 Home in Ontario
Ontario LTT calculation:
0.5% × ,000 =
1.0% × (,000 − ,000) = ,950
1.5% × (,000 − ,000) = ,250
2.0% × (,000 − ,000) = ,000
Total Ontario LTT: $4,475
0.5% × ,000 =
1.0% × (,000 − ,000) = ,950
1.5% × (,000 − ,000) = ,250
2.0% × (,000 − ,000) = ,000
Total Ontario LTT: $4,475
Toronto Municipal Land Transfer Tax (MLTT)
If you buy within the City of Toronto, you pay a second LTT — the Municipal Land Transfer Tax — using the same bracket structure. For a ,000 home in Toronto, the MLTT adds another ~$4,475 for a combined total of ~,950.
First-Time Buyer Rebates
Ontario Rebate
Up to ,000
Max home price: ,000 for full rebate
Toronto Rebate (MLTT)
Up to $4,475
Combined max rebate: $4,475
Eligibility for First-Time Buyer Rebate
- Canadian citizen or permanent resident
- At least 18 years old
- Home must be your principal residence within 9 months
- You (and your spouse/partner) must never have owned a home anywhere in the world
Is there HST on a resale home?
No. Resale (used) homes are generally exempt from HST. However, newly built homes are subject to HST (13%). New home buyers may qualify for the Ontario New Housing Rebate which partially offsets the HST on homes up to ,000.
Calculate your Ontario LTTOpen Calculator →