Who pays land transfer tax?

When you acquire land or a beneficial interest in land, you pay land transfer tax to the province when the transaction closes. Your lawyer will usually collect this tax and pay it directly to the goverment. 

Buyers of houses and condos in Ontario pay land transfer tax when they purchase a property – Sellers never pay. Your lawyer will arrange for land transfer taxes to be paid when the deed to the new home is transferred in your name (on closing day). Buyers in Toronto are especially unlucky – we also get to pay the Toronto  Land Transfer Tax.

Some good news for first-time buyers is that they may be eligible to receive a refund for land-transfer tax.

How much is land transfer tax in Toronto and Ontario?

Toronto and Ontario land transfer taxes are based on a sliding scale, feel free to use our land transfer tax calculator to your right to calculate the cost for your purchase. 

0.5% of the value of the property up to and including $55,000
1% of the value which exceeds $55,000 up to and including $250,000
1.5% of the value which exceeds $250,000 up to and including $400,000
2% of the value between $400,000 and $2,000,000
2.5% for amounts exceeding $2,000,000, where the land contains one or two single family residences

Toronto Land Transfer Tax:

0.5% up to and including the first $55,000
1% of the value which exceeds $55,000 up to and including $250,000
1.5% of the value between $250,000 and $400,000
2% of the value between $400,000 and $2,000,000
2.5% of the value over $2,000,000

Anyway, if you’re planning on buying a house or condo in Toronto, make sure you’ve budgeted for land transfer tax!