Ontario Land Transfer Tax: Rates, Toronto MLTT, and First-Time Buyer Rebates (2026 Guide)

Requirements: Canadian citizen or PR; 18+; property used as principal residence; buyer has never owned a home worldwide; if purchasing with spouse, spouse also cannot have owned a home while being their spouse

Effect: Reduces LTT to zero on properties up to ~$368,333; partial rebate above that

Requirements: Same eligibility criteria as provincial rebate; must apply within 18 months of registration

Effect: Combined with provincial, Toronto FTHBs can receive up to $8,475 in rebates

Requirements: New construction homes purchased from builder; property used as primary residence; purchase price under $450,000 for full federal rebate (partial to $450,000)

Effect: Partially offsets HST on new home purchases; builder typically applies this at closing

Requirements: Transfer between spouses (married or common law) with no change of beneficial ownership; no consideration passing

Effect: Common in matrimonial home transfers on separation; estate planning transfers

Requirements: Qualifying family farm transfer between eligible family members; complex eligibility criteria

Effect: Applies to agricultural property transfers in succession planning context

Calculate provincial LTT on the purchase price (using marginal rates)

Determine if property is in Toronto — if yes, calculate Toronto MLTT separately

Confirm buyer's FTHB eligibility — verify they have never owned a home worldwide

If purchasing with spouse or partner, confirm spouse's ownership history

Check for NRST — is any buyer a non-resident of Canada?

If new construction — confirm HST status and whether builder has applied new housing rebate

Verify exemption eligibility for spouse transfers or other exempt transactions

Include LTT and MLTT (if applicable) in closing cost statement of adjustments

Arrange certified funds for LTT — payable at registration through Teraview

File NRST return if applicable — 30 days after closing

How is Ontario land transfer tax calculated in 2026?

Ontario LTT is calculated on a marginal rate basis: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% on amounts over $2,000,000 (residential properties with 1-2 single family residences). For a $800,000 purchase: 0.5% x $55,000 ($275) + 1.0% x $195,000 ($1,950) + 1.5% x $150,000 ($2,250) + 2.0% x $400,000 ($8,000) = approximately $12,475.

Who qualifies for the Ontario first-time homebuyer land transfer tax rebate?

To qualify for the Ontario FTHB LTT rebate: (1) The buyer must be a Canadian citizen or permanent resident; (2) At least 18 years old; (3) The property must be used as the buyer's principal residence; (4) The buyer cannot have previously owned a home anywhere in the world; (5) If purchasing with a spouse, the spouse also cannot have owned a home while being that person's spouse. The maximum rebate is $4,000 (offsetting LTT on properties up to approximately $368,333).

What is the Toronto Municipal Land Transfer Tax?

The City of Toronto levies a municipal land transfer tax (MLTT) on top of the provincial LTT for properties within Toronto city limits. The rates are: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% on amounts over $2,000,000 (for one or two single family residences). Toronto also offers a first-time buyer rebate of up to $4,475 for the MLTT. Toronto buyers effectively pay double land transfer tax.

What is the Ontario Non-Resident Speculation Tax (NRST)?

The Non-Resident Speculation Tax (NRST) is a 25% tax on the purchase price of residential properties (1-6 units) in Ontario purchased by non-residents of Canada. The NRST is in addition to the provincial LTT and any Toronto MLTT. There are exemptions for protected persons (refugees), international students working in Ontario, and foreign nationals who become permanent residents within 4 years of purchase. The NRST was expanded province-wide in 2022 (previously applied only in the Greater Golden Horseshoe).