When you purchase a property in Toronto, Ontario, you must pay a Land Transfer Tax. It’s called the Provincial Land Transfer Tax or PLTT. Home buyers in Toronto must pay an additional Land Transfer Tax, called the Municipal Land Transfer Tax or MLTT. The PLTT and MLTT are calculated based on the purchase price of the property. Below you’ll find everything you need to know about the Land Transfer Tax in Toronto. You can also use the mortgage and LTT calculator at the bottom of the page to find out the fees for the exact purchase price.
1. Provincial Land Transfer Tax
This tax applies across Ontario and is calculated based on the purchase price of the property. The tax rates are as follows:
- 0.5% on the first $55,000 of the purchase price
- 1.0% on the amount from $55,000 to $250,000
- 1.5% on the amount from $250,000 to $400,000
- 2.0% on the amount from $400,000 to $2,000,000
- 2.5% on the amount above $2,000,000
2. Municipal Land Transfer Tax
If you are purchasing in Toronto, the MLTT applies. It follows a similar structure to the provincial tax:
- 0.5% on the first $55,000
- 1.0% on the amount from $55,000 to $250,000
- 1.5% on the amount from $250,000 to $400,000
- 2.0% on the amount from $400,000 to $2,000,000
- 2.5% on the amount above $2,000,000
Example:
For a property purchase of $500,000 in Toronto the LTT would be calculated as follows:
Provincial LTT:
- 0.5% on the first $55,000 = $275
- 1.0% on the next $195,000 = $1,950
- 1.5% on the next $150,000 =$2,250
- 2.0% on the next $100,000 = $2,000
Total PLTT: $6,475
Municipal LTT:
- 0.5% on the first $55,000: $275
- 1.0% on the next $195,000: $1,950
- 1.5% on the next $150,000: $2,250
- 2.0% on the next $100,000: $2,000
Total MLTT: $6,475
Total: $6,475 (Provincial) + $6,475 (Municipal) = $12,950.
First-time homebuyers rebate
First-time homebuyers get a rebate from both the Municipal and Provincial Land Transfer Taxes.
- Provincial Rebate: Up to $4,000
- Municipal Rebate: Up to $4,475
FAQ’s
Who pays for the Land Transfer Tax?
The purchaser is responsible for paying the LTT in Toronto. The LTT has to be paid to transfer the title to the purchasers on closing.
Do you have to pay the Land Transfer Tax if the property is transferred between spouses?
Unless there is a specific exemption, transfers between spouses or former spouses are subject to the LTT. The list of exemptions is available here.
Do you have to pay the Land Transfer Tax if you gift your property to your child?
Property transfers that are given as gifts between parents and children may qualify for exemptions, as long as there is no outstanding mortgage. However, transfers made where there is an exchange of money generally require the payment of the LTT. Read more
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