Ontario Land Transfer Tax for First-Time Buyers (2026 Rebates)
By FirstHomeGuide.ca Team
How much is Ontario land transfer tax for first-time buyers?
Ontario charges tiered land transfer tax on every property purchase. First-time buyers can claim a rebate of up to $4,000 on provincial LTT — fully covering tax on homes up to ~$368,000. Toronto buyers also get up to $4,475 off municipal LTT. LTT must be paid in cash at closing and cannot be added to your mortgage.
- Provincial LTT rebate: up to $4,000 for qualifying FTHBs
- Toronto MLTT rebate: up to $4,475 additional
- LTT on $500K home (no rebate): ~$6,475 provincial
- Toronto doubles LTT with matching municipal tax
Source: Government of Ontario
Ontario land transfer tax is the single largest closing cost for most buyers in the province — and it catches first-time buyers off guard because it cannot be rolled into your mortgage. If you are buying your first home in Ontario in 2026, rebates can save you up to $4,000 provincially and up to $4,475 more in Toronto. This guide explains the rates, rebates, eligibility, and worked examples.
Use our closing cost calculator for a personalized estimate, and see our Ontario programs guide and land transfer tax deep dive for full details.
How Ontario Land Transfer Tax Is Calculated
Ontario uses a tiered (marginal) system — like income tax brackets. Each portion of the purchase price is taxed at a different rate:
| Purchase Price Portion | Tax Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,001 to $250,000 | 1.0% |
| $250,001 to $400,000 | 1.5% |
| $400,001 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
You pay each rate only on the portion within that bracket — not on the entire purchase price.
Worked Examples: Ontario LTT by Home Price
$350,000 Home
| Bracket | Calculation | Tax |
|---|---|---|
| First $55,000 at 0.5% | $55,000 × 0.005 | $275 |
| $55,001–$250,000 at 1.0% | $195,000 × 0.01 | $1,950 |
| $250,001–$350,000 at 1.5% | $100,000 × 0.015 | $1,500 |
| Total provincial LTT | $3,725 |
With the full $4,000 first-time buyer rebate: $0 provincial LTT owed.
$500,000 Home
| Bracket | Tax |
|---|---|
| 0.5% on first $55,000 | $275 |
| 1.0% on $55,001–$250,000 | $1,950 |
| 1.5% on $250,001–$400,000 | $2,250 |
| 2.0% on $400,001–$500,000 | $2,000 |
| Total | $6,475 |
With $4,000 FTHB rebate: $2,475 out of pocket.
$750,000 Home
Provincial LTT: approximately $11,475 After $4,000 rebate: $7,475 out of pocket
$1,000,000 Home
Provincial LTT: approximately $16,475 After $4,000 rebate: $12,475 out of pocket
First-Time Buyer Rebate: Up to $4,000
Ontario offers a land transfer tax refund for qualifying first-time home buyers:
- Maximum rebate: $4,000
- Applied at closing — your lawyer handles the paperwork
- Fully covers LTT on homes priced up to approximately $368,000
Eligibility Requirements
To qualify as a first-time buyer for the Ontario LTT rebate:
- You must be at least 18 years old
- You (and your spouse, if applicable) have never owned a home anywhere in the world — or owned one so long ago that you still qualify under Ontario’s definition
- You must occupy the home as your principal residence within nine months of purchase
- You must be a Canadian citizen or permanent resident (or meet specific refugee/Protected Person criteria)
- Your spouse cannot have owned a home while being your spouse
If only one buyer on title qualifies, the rebate is reduced proportionally. Both spouses must be first-time buyers to receive the full rebate when buying jointly.
See our first-time buyer guide for the full definition.
Toronto Municipal Land Transfer Tax (MLTT)
If you buy within the City of Toronto boundaries, you pay two land transfer taxes — provincial and municipal — at the same tiered rates.
Toronto LTT Example: $600,000 Home
| Tax | Amount |
|---|---|
| Provincial LTT | $8,475 |
| Provincial FTHB rebate | −$4,000 |
| Provincial net | $4,475 |
| Municipal LTT (Toronto) | $8,475 |
| Municipal FTHB rebate | −$4,475 |
| Municipal net | $4,000 |
| Total LTT | $8,475 |
Without rebates, Toronto LTT on a $600,000 home would be $16,950 — nearly double what buyers in Mississauga or Hamilton pay on the same price.
Toronto First-Time Buyer Rebate
- Maximum municipal rebate: $4,475
- Same eligibility rules as provincial rebate
- Applied at closing alongside provincial rebate
Ontario LTT vs Other Provinces
| Province | LTT on $500K Home | FTHB Rebate |
|---|---|---|
| Ontario | ~$6,475 | Up to $4,000 |
| Toronto | ~$12,950 | Up to $8,475 combined |
| BC | ~$8,000 PTT | Full exemption ≤$500K |
| Alberta | ~$400 registration fee | N/A |
| Quebec | ~$6,000 welcome tax | Varies by municipality |
Ontario’s LTT is among the highest in Canada, which makes the first-time buyer rebates especially valuable. Read our land transfer tax guide for all provinces.
How LTT Fits Into Total Closing Costs
Land transfer tax is just one line item. Total closing costs in Ontario typically run 1.5% to 4% of purchase price:
| Cost | Typical Range |
|---|---|
| Land transfer tax | $0 to $16,000+ (after rebates) |
| Legal fees | $1,500 to $2,500 |
| Title insurance | $250 to $500 |
| Home inspection | $400 to $600 |
| Appraisal | $300 to $500 |
| PST on CMHC premium (if insured) | 8% of premium in Ontario |
| Adjustments (taxes, utilities) | Varies |
Example: $500,000 home, 5% down, first-time buyer outside Toronto
- Down payment: $25,000
- Provincial LTT after rebate: $2,475
- Legal + title + inspection: ~$2,500
- PST on CMHC (~$19,000 premium × 8%): ~$1,520
- Total cash beyond down payment: ~$6,500
Use our closing cost calculator to model your scenario.
Stacking Ontario Rebates with Federal Programs
Ontario first-time buyers can combine LTT rebates with federal programs:
| Program | Benefit |
|---|---|
| Ontario LTT rebate | Up to $4,000 |
| Toronto MLTT rebate | Up to $4,475 |
| FHSA | Up to $40,000 tax-advantaged savings |
| RRSP HBP | Up to $60,000 per person |
| Home Buyers’ Tax Credit | $1,500 on tax return |
| GST exemption (new builds under $1M) | Full GST elimination |
See our federal programs guide and Ontario programs guide.
When Is LTT Due?
Land transfer tax is due on closing day. Your real estate lawyer calculates the amount, applies any rebates, and remits payment to the province (and municipality in Toronto) from your closing funds.
You cannot:
- Add LTT to your mortgage
- Pay LTT in installments
- Defer LTT to a later date
This is why many first-time buyers are surprised — they saved for a down payment but did not budget for LTT in cash.
How to Reduce Your Ontario LTT
- Claim the first-time buyer rebate — ensure your lawyer files the refund application at closing
- Buy outside Toronto — avoid the doubling effect of municipal LTT
- Consider purchase price — the $368,000 threshold gets full provincial rebate
- Buy in a lower-tax province — if relocation is an option (Alberta has no LTT)
- New build HST exemption — Ontario Bill 114 may offer full HST exemption on new homes up to $1M (April 2026–March 2027)
Using Our Closing Cost Calculator for Ontario
Our closing cost calculator includes:
- Ontario provincial LTT at current tiered rates
- Toronto municipal LTT (select Toronto as your city)
- First-time buyer rebate calculations
- Legal fees, title insurance, and PST on CMHC premiums
Enter your purchase price, down payment, and first-time buyer status for an instant estimate.
Common Questions
Do I pay LTT on a newly built home?
Yes. LTT applies to both resale and new construction purchases in Ontario. New builds may also qualify for HST rebates or the Ontario HST exemption (Bill 114) — separate from LTT.
What if I buy with a partner who is not a first-time buyer?
If your partner has previously owned a home, you may receive a partial rebate based on your ownership percentage — or no rebate if your partner owned while married to you. Consult your lawyer before closing.
Is LTT tax-deductible?
No. LTT is not deductible on your income tax return (unlike property taxes for some rental situations). The Home Buyers’ Tax Credit ($1,500) is a separate federal credit.
Can I get the rebate after closing?
The rebate is normally applied at closing. If you qualified but did not claim it, you may be able to apply retroactively within 18 months — contact the Ontario Ministry of Finance.
Next Steps for Ontario First-Time Buyers
- Estimate your LTT with our closing cost calculator
- Confirm rebate eligibility with your lawyer before making an offer
- Budget cash for LTT on top of your down payment
- Read the full guides: Ontario programs, land transfer tax, closing costs overview
- Model your mortgage with our mortgage calculator
Ontario land transfer tax is unavoidable — but first-time buyer rebates can cut thousands off your closing bill. Knowing the numbers before you shop prevents the most common closing-day surprise in Canada’s largest housing market.