Land Transfer Tax Information
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:
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.
Land transfer tax rates
The tax rates calculated on the value of the consideration are:
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.
|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:
Value of consideration in foreign currency
All monies must to be expressed in Canadian dollars. The land transfer tax statements must set out the value of the consideration in Canadian dollars. The date of currency conversion should be the:
Paying the tax
Ontario’s land transfer tax is payable when the transfer is registered.
If the transfer is not registered within 30 days of closing, you must to submit a Return on the Acquisition of a Beneficial Interest in Land form to the Ministry of Finance, along with the payment of tax within 30 days after the closing date.
Some person(s) do not pay land transfer tax on certain transfers of land. The exemptions include:
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered on title.
Overpayment and refunds
If you overpaid land transfer tax, you can ask the Ministry of Finance for a refund. Here’s how:
There is no time restriction where a refund is requested for land transfer tax paid on registration of a notice or caution where the transfer contemplated in the agreement referred to in the notice or caution did not take place.
First time homebuyers refunds requests must be made within 18 months after the date of the transfer.
All other refund requests must be made within 4 years after the date of payment of the tax.
Land Transfer Tax Refund for First-time Homebuyers
When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax.
Land Transfer Tax Refund
Top of Form
Bottom of Form
How much money could I receive?
The maximum amount of the refund is $2,000.
|Cost of Home||Tax Payable||Tax Refund||Net Tax Payable|
If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance, within 18 months after the transfer. No interest is paid on this refund.
Do I qualify?
To get a refund of land transfer tax, you:
If you have a spouse, your spouse cannot have owned an eligible home, or an interest in an eligible home, anywhere in the world while being your spouse.
You must apply for a refund within 18 months after the date of the transfer.
How do I get the refund?
If you qualify, you can claim an immediate refund at time of registration in one of two ways:
Refunds claimed after registering
If you did not claim the refund at the time of registration and paid all of the land transfer tax owing, you can apply for a refund. To do this, you must submit:
Send your application to
Ministry of Finance
Advisory and Compliance Branch
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
The application and any refund payment may be audited by the Ministry of Finance. Charges may be laid and fines result if you obtain or attempt to obtain a refund by deceit, falsehood or any fraudulent means.
Harmonized Sales Tax (HST)
The HST applies to newly constructed 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.