Land Transfer Tax in Ontario: What Buyers Need to Know in 2025

Ontario buyers should factor Land Transfer Tax into their 2025 home buying budget.

When you’re buying a home in Ontario, there’s one major cost that often sneaks up on buyers: Land Transfer Tax (LTT). It’s a significant closing expense—and one that can catch you off guard if you don’t plan ahead. Here’s what you need to know for 2025 so you can budget confidently and avoid surprises on closing day.

What Is LTT?

Land Transfer Tax is a provincial tax you pay when you purchase real estate in Ontario. The amount is based on your home’s purchase price, and it applies to both resale and newly built homes.

How Much Is It?

LTT is calculated on a sliding scale. Here’s a quick breakdown for 2025:

• 0.5% on the first $55,000
• 1.0% on $55,000.01 to $250,000
• 1.5% on $250,000.01 to $400,000
• 2.0% on $400,000.01 to $2,000,000
• 2.5% on anything over $2,000,000

Want an exact number? Use an Ontario Land Transfer Tax calculator to see what you’ll owe based on your purchase price.

First-Time Buyer Rebate

If you’re a first-time homebuyer, you could qualify for a rebate of up to $4,000 off your LTT. This can make a big difference, so be sure to check if you’re eligible!

Double Trouble in Toronto

Buying in Toronto? There’s a second municipal Land Transfer Tax to pay on top of the provincial one. That means double the LTT—so make sure to factor in both when budgeting for your move.

When and How It’s Paid

LTT is paid in a lump sum on closing day, typically handled by your lawyer as part of the final paperwork. It’s not something you can roll into your mortgage, so you’ll need to have the funds ready.

Tips to Prepare

• 💡 Get an LTT estimate early in your home search.
• 💰 Include LTT in your overall budget—not just your down payment and closing costs.
• 📋 Confirm your eligibility for the first-time buyer rebate before you buy.