Does transferring farmland to a child trigger Ontario land transfer tax, and are there exemptions?

It depends on how the transfer is structured, which is worth checking carefully before you transfer anything. Ontario land transfer tax generally applies when land changes hands, but how it applies, and whether any exemption might be available, depends on details like whether the farmland is transferred for actual payment, including a vendor take-back arrangement, or given as a gift, whether the transfer is between family members, and how title is held. There are also separate capital gains consequences at the federal level to think through, since transferring farmland during your lifetime can trigger a disposition for income tax purposes, whereas a transfer through a will happens at death instead.

Because land transfer tax rates and any exemption criteria can change and depend heavily on the specific facts of the transfer, this isn't something to estimate informally or assume based on how a neighbour's farm transfer was handled. The safest approach is to have a lawyer review the proposed structure, whether a sale, a gift, or a transfer through a will, before it happens, and to confirm the current rates and any applicable exemption directly with the Ministry of Finance or your lawyer, rather than relying on a general rule of thumb.