Ontario land transfer tax

Land transfer tax is payable "on every conveyance of land tendered for registration and every unregistered disposition of a beneficial interest in land", unless an exemption applies. The rates have been unchanged since January 1, 2017. Each rate applies only to the part of the value inside its band: 0.5% up to $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000 and 2% above $400,000. For land containing one or two single family residences, the part above $2,000,000 is taxed at 2.5%. Single family residences include cottages and cabins.

Worked example: on a $500,000 house, the tax is $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000 and $2,000 on the last $100,000, for a total of $6,475. The Ministry of Finance gives a shortcut for homes between $400,000 and $2,000,000: value times 2%, minus $3,525. A $1,000,000 home therefore pays $16,475. Above $2,000,000 the shortcut for homes is value times 2.5%, minus $13,525.

In Toronto, a municipal land transfer tax is charged on top of the provincial tax.

The buyer (the transferee) pays. Section 2(1) of the Land Transfer Tax Act requires the person registering the transfer to pay "when the conveyance is tendered for registration or before it is tendered for registration". On electronic registrations, Ontario's electronic land registration system calculates the tax automatically from the value entered and any exemptions claimed. The Ministry of Finance also accepts requests to pre-pay land transfer tax. For an unregistered disposition of a beneficial interest, the tax is payable to the Minister of Finance on the 30th day after the disposition, unless regulations set different timing.

The tax is calculated on the "value of the consideration". This includes the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades. When HST applies to the purchase, the value does not include the HST paid on the purchase price, but HST embedded in soft costs stays in. In some cases the value is deemed to be the fair market value, for example leases that can exceed 50 years and certain transfers between a corporation and its shareholders. A vacant lot bought with a construction contract is valued at the lot cost plus the construction contract. Prices in a foreign currency are converted to Canadian dollars as of the date the agreement becomes binding.

First-time homebuyers can get a refund of up to $4,000 for conveyances on or after January 1, 2017. The Ministry says that, as a result, no tax is payable on the first $368,000 of value. The refund covers new and resale homes.

The Ministry lists these conditions: the purchaser "must be at least 18 years old" and "must occupy the home as their principal residence within nine months of the date of transfer". The purchaser also "cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time". If the purchaser has a spouse, the spouse cannot have owned one while they were the purchaser's spouse. Since January 1, 2017 the refund is limited to Canadian citizens and permanent residents, and purchasers who obtain that status within 18 months of registration can still apply. When a co-buyer is not a first-time buyer, the refund is reduced to the first-time buyer's share.

The refund can be claimed at registration in the electronic land transfer tax affidavit. Otherwise the tax is paid and a claim is sent to the Ministry of Finance online within 18 months. No interest is paid on the refund.

Ontario has no land transfer tax exemption specific to new homes; the first-time buyer refund applies to new and resale homes alike. On a new home, the value of the consideration includes extras and upgrades, lot premiums and builder costs passed on to the buyer, such as development charges.

The Non-Resident Speculation Tax (NRST) is 25%, effective October 25, 2022. It is charged on top of land transfer tax when a foreign national, foreign corporation or taxable trustee acquires residential land anywhere in Ontario. It applies to "designated land", meaning land with one to six single family residences, and since March 27, 2024 also to condominium parking and storage units. If any one transferee is a foreign entity, the NRST is charged on the full value; it is not prorated. A $1,500,000 purchase therefore owes $375,000 in NRST.

Exemptions are available for nominees under the Ontario Immigrant Nominee Program, protected persons, and the spouse of a Canadian citizen, permanent resident, nominee or protected person. A Permanent Resident NRST Rebate is available when the buyer becomes a permanent resident within four years; applications must be received within 180 days of becoming a permanent resident. Since November 6, 2025 there is also an industrial use rebate. The older rebates for international students and foreign workers have been phased out.

Ontario exempts some transfers between spouses or former spouses under Regulation 696. The exemption applies only where the only consideration is taking over a registered encumbrance such as a mortgage, where the transfer follows a written separation agreement, or where it is made under a court order or judgment. A transfer between spouses must fall within one of these three situations to be exempt under the regulation.

No tax is payable on registering a lease, or a transfer of a lessee's interest, when the unexpired term cannot exceed 50 years including renewals. Other exemptions are set out in the Act and its regulations.

March 26, 2026: the Act's definition of "foreign national" was amended to exclude people registered under the Indian Act (Canada), so they are no longer subject to the NRST (S.O. 2026, c. 2, Sched. 8). November 6, 2025: an NRST industrial use rebate became available for conveyances on or after this date. March 27, 2024: condominium parking and storage units became designated land for the NRST. The land transfer tax rates themselves have not changed since January 1, 2017, and the $4,000 refund maximum has applied since the same date.