Ontario Land Transfer Tax 2026

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What is land transfer tax?

When buying a home, many people overlook the significant cost of land transfer tax. When you acquire a property (and the land it rests on), you must pay a tax to the government after the transaction closes. The amount paid depends on the value of your property.

Our calculator shows you how much you can expect to pay and why. Ontario’s provincial Land Transfer Tax rates apply across the province. Properties located within the City of Toronto, including North York, Etobicoke and Scarborough, are also subject to Toronto’s Municipal Land Transfer Tax (MLTT). Read below for more details.

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History of the Ontario Land Transfer Tax

Introduced to Ontario in 1974, the Conservative Ontario Government presented the provincial Land Transfer Tax to property buyers with a starting percentage of 0.3% for up to $35,000 of the purchase price of property and 0.6% for the rest. In 2008, a municipal Land Transfer Tax was introduced in addition to the provincial one to home buyers in Toronto and a Non-Resident Speculation Tax became effective for the Greater Golden Horseshoe Region in 2017. Ontario’s Land Transfer Tax rates were last updated in 2017. Land transfer tax rates in Ontario aren’t changed often. When Ontario land transfer tax rates were last updated in 2017, it was the first update in 20 years since 1997.

Ontario Land Transfer Tax Rates

*The highest marginal rate of 2.5% only applies to properties with one or two residential units.

Ontario Land Transfer Tax Rebates

Use our simple Ontario income tax calculator

Land transfer tax can be a significant burden for home buyers, especially for first-time home buyers in Ontario. To offset the negative effects of the large amount of tax, the government doubled the refund for first-time home buyers in 2017. For conveyances or dispositions that occurred before January 1, 2017, the maximum Ontario first-time homebuyer refund was $2,000. For conveyances or dispositions on or after January 1, 2017, the maximum refund is $4,000. Qualifying first-time purchasers pay no Ontario Land Transfer Tax on the first $368,000 of the value of consideration, while purchasers of homes valued above $368,000 may receive a maximum refund of $4,000.

Who qualifies as a first time home buyer in Ontario?

To qualify as a first time home buyer in Ontario:

• You must be at least 18 years of age.
• You must be a Canadian citizen or permanent resident.
• You must occupy the property as your principal residence.
• You cannot have owned a home, or a stake in a home, anywhere in the world, at any time.
• Your spouse/common-law partner cannot have owned a home while they were your partner.

A spouse can include a person that you are not married to but have lived together for at least three years, have a common-law relationship, or if you and that person are parents of a child. You must occupy the home as your principal residence within nine months of the date of transfer. Also, you must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs.

What if one purchaser is a first-time home buyer and the other is not?

You can still receive the land transfer tax refund even if one or more purchasers are not first-time home buyers, but the amount that you can receive will be partially reduced. For example, if there are two purchasers and one purchaser is a first-time homebuyer, then the first-time homebuyer can claim 50% of the land transfer tax refund.

You can claim the first-time homebuyer refund at the time that your property is being registered, or you can claim the refund at a later date. If you are claiming the refund at registration, your real estate lawyer can claim the refund electronically if they are registering your property through Ontario's electronic land registration system.

The tax refund will reduce the amount of land transfer tax payable. If you otherwise qualify but are not a Canadian citizen or permanent resident when the transaction closes, you must pay the applicable land transfer tax at registration. If you become a Canadian citizen or permanent resident within 18 months after registration or disposition, you may apply for the first-time homebuyer refund within that 18-month period.

For a refund claimed after registration, supporting documents generally include the registered conveyance (transfer/deed), the Agreement of Purchase and Sale including all schedules, amendments and assignments, the Statement of Adjustments if applicable, proof of occupancy showing the new address, and proof of Canadian citizenship or permanent residence. The Ministry of Finance may request additional documentation.

Home buyers purchasing property within the City of Toronto pay Toronto’s Municipal Land Transfer Tax (MLTT) in addition to Ontario’s provincial Land Transfer Tax. For residential properties containing one or two single-family residences, Toronto’s marginal MLTT rates match Ontario’s rates up to $3 million. Effective April 1, 2026, Toronto applies higher marginal MLTT rates above $3 million: 4.40% from $3 million to $4 million, 5.45% from $4 million to $5 million, 6.50% from $5 million to $10 million, 7.55% from $10 million to $20 million, and 8.60% above $20 million. These rates apply to transfers that close on or after April 1, 2026. Transfers that closed on or after January 1, 2024 and before April 1, 2026 are subject to the previous brackets of 3.50% from $3 million to $4 million, 4.50% from $4 million to $5 million, 5.50% from $5 million to $10 million, 6.50% from $10 million to $20 million, and 7.50% above $20 million. To account for the additional cost to Toronto homebuyers, first-time home buyers in Toronto can receive a rebate of up to $4,475.

Toronto is the only city in Ontario to have a municipal land transfer tax. Neighbouring cities, such as Mississauga, Brampton, Vaughan, and Markham do not have a municipal land transfer tax, and only have to pay the provincial land transfer tax. If you purchase a home in Toronto, you generally pay both Ontario Land Transfer Tax and Toronto Municipal Land Transfer Tax, while buyers elsewhere in Ontario generally pay only the provincial Land Transfer Tax. For many properties this results in roughly twice the land transfer tax before rebates; however, Toronto’s higher marginal MLTT rates on qualifying residential properties above $3 million mean the total is not always exactly double.

First-time homebuyers looking to purchase a home in Toronto can receive a land transfer tax refund of up to $4,475.00. For more information about land transfer rebate opportunities, including property tax relief programs, visit our Toronto land transfer tax page.

Effective January 1, 2025, the City of Toronto imposes a 10% Municipal Non-Resident Speculation Tax (MNRST) on the purchase price of certain residential properties purchased by foreign buyers. The MNRST applies in addition to Toronto’s MLTT and any applicable Ontario NRST. It applies to the full purchase price of land containing at least one and not more than six single-family residences, and the City does not provide grandfathering for agreements of purchase and sale entered into before January 1, 2025.

The Non-Resident Speculation Tax (NRST) is a 25% tax payable by home buyers who are not citizens or permanent residents of Canada or are foreign corporations or trustees if they purchase a property in Ontario. The NRST applies to residential property which contains at least one and not more than six single family residences. While the ban on foreign investment eclipses NRST, it will apply again when the federal government welcomes foreign investment.

Effective March 30, 2022, the NRST has expanded to cover all of Ontario. This means non-residents will need to pay the additional tax when purchasing a property in the province. Additionally, the tax was increased from 15% to 20% on March 30, 2022. A further tax increase pushed the NRST from 20% to 25% effective October 25, 2022.

The Non-Resident Speculation Tax does not replace the Ontario land transfer tax. You will need to pay both the Non-Resident Speculation Tax and Ontario land transfer tax if you are a foreign national.

All cities within Ontario are now subject to the Non-Resident Speculation Tax (NRST). Before March 30th, 2022, the tax only applied to cities in the Greater Golden Horseshoe Region. This is the area surrounding Lake Ontario and close to Toronto.

Homebuyers that are not Canadian citizens or permanent residents will need to pay the NRST. This includes foreign corporations that are based in another country and Canadian corporations that are controlled by a foreign national or foreign corporation.

The Non-Resident Speculation Tax is charged if one purchaser is a foreign national, even if all other purchasers are Canadian citizens or permanent residents.

For example, three homebuyers purchase a $500,000 home in Toronto. Two purchasers are Canadian citizens, and one is a foreign national who does not qualify for an exemption. The 25% Ontario NRST would be $125,000. Because the property is in Toronto, an applicable foreign purchaser may also be subject to Toronto’s 10% MNRST, which would add $50,000, in addition to the applicable provincial and municipal land transfer taxes. Where both speculation taxes apply, the combined rate on a Toronto purchase is 35%.

Homebuyers, including foreign nationals, looking to purchase the following properties will not need to pay the Non-Resident Speculation Tax:

• Multi-residential rental property with more than six units
• Agricultural land
• Commercial land
• Industrial land

Foreign nationals that purchase land in Ontario that is not residential will be exempt from this tax.

Yes, you will still need to pay the Non-Resident Speculation Tax even if you purchase more than six units in a condominium. That’s because each condo unit is considered to be a single family residence. In order to be exempt from this foreign homebuyer tax, you will need to purchase a building that has more than six units.

NRST exemptions may be available to qualifying foreign nationals purchasing with a spouse who is a Canadian citizen or permanent resident, qualifying protected persons, and qualifying nominees under the Ontario Immigrant Nominee Program, subject to the applicable conditions. Simply applying to become a permanent resident does not, by itself, qualify a purchaser for an NRST exemption.

Ontario currently provides a permanent resident NRST rebate and an industrial use rebate. The former international-student and foreign-worker transitional NRST rebates are no longer available; their application deadline was March 31, 2025. A qualifying foreign national may be eligible for the permanent resident rebate if they become a permanent resident of Canada within four years of the purchase or acquisition and meet the other requirements. The application must generally be received within 180 days after becoming a permanent resident.

The Non-Resident Speculation Tax went into effect on April 21, 2017.

Visit our Canada Land Transfer Tax page to find out more information about land transfer and other taxes across Canada.

Changes to Ontario’s land transfer tax rates are infrequent, and they have generally been increases to Ontario land transfer tax brackets.

The buyer of a home will pay the land transfer tax, not the seller of a home. Ontario home buyers should budget for the land transfer tax as part of their closing costs when purchasing a home, which can include costs of getting a mortgage. While land transfer tax makes up most of the closing costs for buyers, other closing costs include legal fees, registration fees, and home inspection fees. To calculate how much land transfer tax you will need to pay, use the Ontario land transfer tax calculator at the top of this page.

There are ways that the land transfer tax can be avoided. For example, there is no land transfer tax between family members in Ontario if the property is gifted and no payment was made for the property.

Land transfer tax is paid during closing through your lawyer. If your lawyer chooses to electronically register your property, Ontario's electronic land registration system will calculate the land transfer tax payable, after any rebates and exemptions. Ontario land registry services are only available online. Authorized users register documents through Ontario’s electronic land registration system.

If you happen to have overpaid your land transfer tax, such as if you now qualify for a rebate or exemption, then you may claim a refund from the Ministry of Finance. You can also pre-pay land transfer tax before your property is registered.