Realtor: Calculators
Land transfer tax and closing costs
The cash you need on closing day, not just the down payment.
Cash you need on closing
$139,475
- Down payment
- $130,000
- Ontario land transfer tax
- $9,475
An estimate for a resale home bought by a Canadian resident. It does not include HST on a newly built home, the non-resident speculation tax, moving costs, or anything your lender charges. Ottawa, Brampton and the rest of Ontario pay the provincial land transfer tax only; the City of Toronto charges its own on top. Where the down payment is under 20%, the tax on the mortgage insurance assumes a 25-year amortization. Legal fees and title insurance are quoted per file — ask Gurpreet Singh Mahal, Mahal Law Professional Corporation, for a quote. Land transfer tax rates are set by the Province of Ontario and the City of Toronto and change from time to time.
Ontario land transfer tax, band by band
- Up to $55,000
- 0.5%
- $55,000 to $250,000
- 1.0%
- $250,000 to $400,000
- 1.5%
- $400,000 to $2,000,000
- 2.0%
- Over $2,000,000
- 2.5%
Each band applies only to the part of the price inside it, so a $650,000 home is taxed at 0.5% on the first $55,000 and so on up, not at 2% on the whole amount. Inside the City of Toronto the municipal tax adds the same again below $2 million.
Common questions
- How much is land transfer tax in Ontario?
- It is charged in bands: 0.5% on the first $55,000, 1% up to $250,000, 1.5% up to $400,000, 2% up to $2 million, and 2.5% above that. On a $650,000 home the tax comes to $9,475.
- Do I pay land transfer tax twice in Toronto?
- Inside the City of Toronto, yes in effect: the city charges its own municipal land transfer tax on top of the provincial one, and below $2 million the two are the same amount. Brampton, Mississauga, Ottawa and the rest of Ontario pay the provincial tax only.
- What is the first-time home buyer rebate?
- Ontario refunds up to $4,000 of the provincial tax, which covers a home of roughly $368,000 in full. First-time buyers in the City of Toronto can claim a further municipal rebate of up to $4,475.
- What else do I need on closing day?
- Your down payment, the land transfer tax, legal fees and disbursements, title insurance, and adjustments for property tax or utilities the seller has already paid. If your down payment is under 20%, the provincial tax on your mortgage insurance premium is also due in cash — it cannot be added to the mortgage.
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