Free Ontario Land Transfer Tax first-time buyer refund calculator. Up to $4,000 provincial refund. Toronto buyers face additional municipal LTT with a separate $4,475 rebate.
Calculate Ontario Land Transfer Tax and your first-time buyer refund, including Toronto municipal LTT.
Net LTT after rebate
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Provincial LTT
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Toronto municipal LTT
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Total rebates applied
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Your breakdown
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Ontario LTT: a progressive tax with a sharp first-time buyer benefit
Ontario Land Transfer Tax applies to virtually every purchase of real property in the province. The tax is calculated on a graduated scale: 0.5 percent on the first $55,000, 1 percent on the next $195,000 (to $250,000), 1.5 percent on the next $150,000 (to $400,000), and 2 percent above $400,000. On an $800,000 home this works out to $12,475 in provincial LTT. The first-time buyer refund of up to $4,000 reduces that to $8,475. This is a meaningful but not complete offset, and it must be claimed at time of registration, not as a tax return refund after the fact.
Toronto doubles the LTT burden
City of Toronto buyers face a second layer of Land Transfer Tax levied by the municipality on top of the provincial tax. The Toronto MLTT uses identical rate tiers to the provincial LTT up to $400,000, plus a 2 percent tier on $400,001 to $2 million and 2.5 percent above $2 million. On an $800,000 Toronto purchase, the MLTT adds another $12,475, bringing the combined LTT before rebates to $24,950. Toronto first-time buyers can claim both the provincial $4,000 rebate and a separate municipal $4,475 rebate for maximum combined relief of $8,475. Even with both rebates, a Toronto first-time buyer on an $800,000 home owes $16,475 in combined LTT at closing.
How to plan for LTT as a closing cost
LTT is frequently underestimated by first-time buyers who focus exclusively on the down payment and monthly mortgage payment. A practical rule for Ontario buyers outside Toronto is to budget 1.5 to 2 percent of the purchase price for LTT. Toronto buyers should budget 3 to 4 percent. Your real estate lawyer will calculate the exact amount and collect it as part of the closing funds. Since LTT cannot be financed, having this cash available is a hard requirement at closing. Build LTT into your savings target from day one rather than treating it as a surprise expense at the end of the purchase process.
Frequently asked questions
What is the maximum Ontario LTT first-time buyer refund?
The maximum Ontario Land Transfer Tax refund for first-time home buyers is $4,000. This refund applies to the provincial LTT only. To qualify, you must be a Canadian citizen or permanent resident, be at least 18 years old, have never owned a home anywhere in the world, intend to occupy the property as your principal residence within 9 months of purchase, and your spouse must also not have owned a home while being your spouse. The refund is credited at closing through your lawyer.
How much is Toronto municipal land transfer tax?
Toronto levies a separate municipal Land Transfer Tax (MLTT) on top of the Ontario provincial LTT. The MLTT uses rates of 0.5 percent on the first $55,000, 1 percent on $55,001 to $250,000, 1.5 percent on $250,001 to $400,000, 2 percent on $400,001 to $2,000,000, and 2.5 percent above $2,000,000. First-time buyers purchasing in Toronto qualify for a separate municipal rebate of up to $4,475. Toronto buyers therefore face a combined LTT bill roughly twice the provincial rate, making Toronto one of the most expensive cities for closing costs in Canada.
At what price does the Ontario LTT first-time buyer refund fully apply?
The Ontario first-time buyer refund fully covers the LTT on properties up to approximately $368,000, where the LTT equals $4,000. For properties priced above that threshold the refund is capped at $4,000 and the buyer pays the remaining LTT in cash. Because Ontario LTT is a substantial closing cost, often $8,000 to $20,000 for typical resale homes in major cities, the refund represents only partial relief for most Toronto-area first-time buyers.
Can the Ontario LTT be added to a mortgage?
No. Ontario Land Transfer Tax must be paid in cash at closing through your real estate lawyer. Unlike CMHC mortgage insurance premiums, LTT cannot be rolled into your mortgage balance. This means first-time buyers must have enough cash saved beyond their down payment to cover LTT, legal fees, home inspection, moving costs, and any immediate repairs. Budget at least 1.5 to 4 percent of the purchase price for closing costs beyond your down payment when buying in Ontario.