In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of Ontario's land registry office.
Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
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:
- a lease can exceed 50 years;
- land is transferred from a corporation to one of its shareholders; or
- land is transferred to a corporation, if shares of the corporation are issued.
In addition to Ontario's land transfer tax, transfers of land located in the City of Toronto may also be subject to the City of Toronto's own municipal land transfer tax.
For information on the City of Toronto Municipal Land Transfer Tax:
- visit their website or
- call 416 338-4829
416 392-0719 for teletypewriter
Monday to Friday, 8:30 a.m. to 4:30 p.m.
If you are a first-time homebuyer, you may be eligible for a refund of all or part of the tax. Learn more
The tax rate has not changed since June 1, 1989.
- 0.5% of the value of consideration for the transfer up to and including $55,000,
- 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
- 1.5% of the value of the consideration which exceeds $250,000, and
- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
View a list of previous Land Transfer Tax rates.
On July 1, 2010, Ontario is proposing to introduce a federally administered Harmonized Sales Tax (HST) that will apply to most goods and services.
The HST would apply to newly constructed homes, but would not apply to resale homes. Buyers of new homes would receive a rebate of up to $24,000 regardless of the price of the new home.
Learn more
You must pay Ontario's land transfer tax at the time the transfer is registered.
If the transfer is not registered, you must submit a Return on the Acquisition of a Beneficial Interest in Land
to the Ministry of Revenue along with payment of tax within 30 days.
Exemptions from land transfer tax are limited. The main exemptions include:
- certain transfers from an individual to their family business corporation;
- certain transfers of farmed land between family members;
- certain transfers between spouses;
- certain transfers of a life lease from a non-profit organization or a charity.
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered in a land registry office.
For more information about exemptions and deferral of land transfer tax, refer to our list of land transfer tax bulletins.
