Ontario Land Transfer Tax (2025): Calculator + FTHB Rebates

The Big Closing Cost in Ontario

If you’re planning to buy a home in Ontario in 2025, you already know about down payments, mortgages, and legal fees. But one closing cost that often surprises buyers is the Ontario Land Transfer Tax (LTT).

LTT is a tax you must pay upfront when you take ownership of property. Unlike a mortgage, it cannot be financed—it’s due in full on closing. The good news? Ontario offers First-Time Home Buyer (FTHB) rebates that can dramatically reduce your bill.

This guide explains how LTT works, provides a calculator formula with examples, and shows how first-time buyers can save.

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How Ontario Land Transfer Tax Is Calculated

Ontario’s LTT is calculated on a sliding scale, similar to income tax. Different portions of your purchase price are taxed at different rates.

Ontario LTT Rates (2025):

• 0.5% on the first $55,000
• 1.0% on $55,001 – $250,000
• 1.5% on $250,001 – $400,000
• 2.0% on $400,001 – $2,000,000
• 2.5% above $2,000,000

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Ontario Land Transfer Tax Calculator: Examples

Example 1: $500,000 home in Ottawa

• First $55,000 × 0.5% = $275
• Next $195,000 × 1.0% = $1,950
• Next $150,000 × 1.5% = $2,250
• Remaining $100,000 × 2.0% = $2,000
• Total LTT = $6,475

Example 2: $800,000 home in Mississauga

• Total Ontario LTT = $12,475

Example 3: $1.5M home in Toronto

• Ontario LTT = $27,475
• Toronto Municipal LTT = $27,475
• Total = $54,950

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The Toronto “Double Tax”

If you buy in the City of Toronto, you’ll pay two taxes:

• Ontario’s LTT (provincial)
• Toronto’s Municipal Land Transfer Tax (MLTT), which uses the same brackets

That means Toronto buyers pay double compared to the rest of Ontario.

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First-Time Home Buyer Rebates

Ontario helps first-time buyers by offering rebates that reduce or even eliminate LTT.

• Ontario Rebate: Up to $4,000
• Toronto Rebate: Up to $4,475
• Combined Savings: Up to $8,475

Who Qualifies?

• At least 18 years old
• Never owned a home anywhere in the world
• Spouse/common-law partner has not owned a home during the relationship
• Must move into the home as your principal residence within 9 months

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Real-Life Rebate Examples

Example 1: $500,000 home in Ottawa (FTHB)

• Tax before rebate = $6,475
• Rebate = $4,000
• Net LTT = $2,475

Example 2: $800,000 condo in Toronto (FTHB)

• Ontario LTT = $12,475
• Toronto MLTT = $12,475
• Total = $24,950
• Rebates = $8,475
• Net Tax = $16,475

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How and When to Pay

• LTT is due on closing day, paid through your real estate lawyer.
• It must be paid in full—it cannot be added to your mortgage.
• Rebates are usually applied immediately at closing when your lawyer files electronically.

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Budgeting Tips for Buyers

1. Run the numbers early. Always calculate LTT before making an offer.
2. Save extra. Budget 1.5–2% of purchase price for closing costs (LTT + lawyer + title insurance).
3. Claim rebates properly. Make sure your lawyer submits the FTHB rebate forms.
4. Factor Toronto’s double tax. If you’re buying in Toronto, your closing costs will be significantly higher than in nearby cities.

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Why LTT Matters in 2025

With home prices still elevated, land transfer tax is one of the biggest upfront costs in Ontario homeownership. For a $1 million Toronto home, LTT alone can exceed $30,000 after rebates.

That’s why planning for it—and using rebates if eligible—is essential.

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Closing Costs Can’t Be Ignored

Land transfer tax isn’t optional. Every Ontario homebuyer pays it, and in Toronto, buyers pay it twice. But first-time buyers can benefit from rebates worth thousands, making homeownership more affordable.

If you’re buying in 2025, don’t let LTT catch you off guard. Calculate it early, apply your rebate, and budget for closing day.

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