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Land Transfer Tax

In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of Ontario's land registry office.

Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).

The land transfer tax payable is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

In some cases, land transfer tax is based on the fair market value of the land, for example, where:

  • a lease can exceed 50 years;
  • land is transferred from a corporation to one of its shareholders; or
  • land is transferred to a corporation, if shares of the corporation are issued.

Other Types of Land Taxes

Municipalities impose a yearly municipal property tax on land within the municipality. If you have questions about municipal property tax, you should contact the municipality in which the land is located. If the land is in an unorganized territory (an area without municipal organization) provincial land tax may apply rather than municipal property tax.

How much tax do I pay?

If you are a first-time homebuyer, you may be eligible for a refund of all or part of the tax. Learn more.

The tax rate has not changed since June 1, 1989.

  • 0.5% of the value of the consideration up to and including $55,000,
  • 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
  • 1.5% of the value of the consideration which exceeds $250,000, and
  • 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

On July 1, 2010, Ontario introduced a federally administered Harmonized Sales Tax (HST) that applies to most purchases and transactions.

The HST applies to newly constructed homes, but does not apply to resale homes. Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home.

When do I pay the tax?

You must pay Ontario's land transfer tax at the time the transfer is registered.

If the transfer is not registered, you must submit a Return on the Acquisition of a Beneficial Interest in Land [PDF - 200 KB] to the Ministry of Finance along with payment of tax within 30 days.

Exemptions from land transfer tax are limited. The main exemptions include:

  • certain transfers between spouses
  • certain transfers from an individual to their family business corporation
  • certain transfers of farmed land between family members
  • certain transfers of a life lease from a non-profit organization or a charity.

A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered with the land registry office.

Learn more

Click for Land Transfer Tax Calculator 

Source: Ontario Ministry of Finance