Purchase taxes
Ontario land transfer tax
By Bo Yu, Broker, Right at Home Realty, Brokerage · Verified/updated August 2026
Land transfer tax is a provincial tax on the transfer of land. When your lawyer registers the transfer into your name, Ontario collects a percentage of what you paid for the property.
It is calculated on the value of the consideration — usually the purchase price — using marginal tiers, the same way income tax brackets work. It is not a fee anyone charges for a service; it is tax revenue.
Ottawa buyers pay the provincial tax only. There is no municipal land transfer tax in Ottawa; that is a City of Toronto tax.
- Who charges it
- The Government of Ontario (Ministry of Finance), collected at registration.
- Who normally pays
- The buyer, always. It is not negotiable between buyer and seller.
- When it's paid
- On closing day, when your lawyer registers the transfer.
- Cash or financed
- Cash. It cannot be added to your mortgage — your lawyer needs the funds in trust before closing.
- Typical range
- $9,475 on a $650,000 Ottawa purchase
How it's calculated — and why it varies
Ontario applies these marginal rates to the purchase price (rates in force since January 1, 2017):
- 0.5% on the portion up to $55,000
- 1.0% on the portion from $55,000 to $250,000
- 1.5% on the portion from $250,000 to $400,000
- 2.0% on the portion from $400,000 to $2,000,000
- 2.5% on the portion above $2,000,000, where the land contains one or two single-family residences
- Ottawa adds nothing on top — the Toronto municipal land transfer tax applies only inside the City of Toronto
Exemptions, refunds and when it doesn't apply
- First-time buyers can claim a refund of up to $4,000 — see the first-time-buyer refund page.
- Certain transfers between spouses, and some transfers to family businesses or farm corporations, are exempt or partially exempt.
- The tax is based on the value of the consideration; in a non-arm's-length transfer, the Ministry can assess on fair market value instead of the stated price.
- There is no Ottawa or eastern-Ontario municipal land transfer tax, so nothing is layered on top of the provincial calculation.
A real Ottawa example
A $650,000 resale semi in Barrhaven: 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), and 2.0% on the last $250,000 ($5,000).
Total land transfer tax: $9,475, due in cash on closing day. A qualifying first-time buyer would send $5,475 instead, after the $4,000 refund is applied at registration.
How this shows up in the calculator
The calculator prints this as "Ontario land transfer tax" under one-time closing costs, using the exact marginal tiers above. Tick the first-time buyer box and the row shows the tax net of the refund, with the refund amount underneath.
Open the calculatorCommon questions
- Does Ottawa charge its own land transfer tax?
- No. Only the City of Toronto charges a municipal land transfer tax. Ottawa buyers pay the Ontario tax only.
- Can I add land transfer tax to my mortgage?
- No. It has to be paid in cash through your lawyer on closing day, along with your other closing costs.
Official sources — verified/updated August 2026
Rules and rates change. These are the first-party pages this one was checked against; confirm anything that matters to your purchase directly with them.
Every figure on this page is a planning estimate for general information only, based on the assumptions shown, and are not legal, tax, mortgage or financial advice or an offer of credit. Actual rates, payments, taxes, fees and values vary — confirm the numbers with your lender, lawyer or accountant before relying on them. Full disclosures.
This page is general information about how a cost works in Ontario, not legal, tax, mortgage or accounting advice, and not a quote. Your lawyer, lender and accountant confirm what actually applies to your purchase.
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