What is a Land Transfer Tax?
When you’re budgeting for a home purchase, the price of the property is only part of the equation. You’ll also need to plan for your deposit, down payment, legal fees, and closing costs — including land transfer tax.
It’s one of the biggest expenses buyers overlook, especially in Toronto.
So, what is it? Land transfer tax is a fee paid when ownership of a property changes hands. Think of it like sales tax on a major purchase: just as you pay tax on a car or everyday purchases, you’ll pay tax when buying a home. The amount depends on the purchase price of the property.
In Toronto, buyers pay two land transfer taxes: one to the Province of Ontario and another to the City of Toronto.
The good news? If you’re a first-time home buyer, you may qualify for rebates that can significantly reduce the amount you owe.
Use the calculator below to estimate your land transfer tax and build it into your closing cost budget before you buy. A little planning upfront makes the entire process feel a lot lighter at closing day.
