Where does land transfer tax appear — on the statement of adjustments or elsewhere?

Land transfer tax in Ontario is not typically shown as a line item on the statement of adjustments. The statement of adjustments is a document that adjusts the purchase price between buyer and seller. Land transfer tax is a government obligation owed solely by the buyer and does not affect the seller — so it is not an adjustment between the parties.

Instead, land transfer tax appears on the trust ledger prepared by your real estate lawyer. It is one of the disbursements your lawyer pays on your behalf on closing day from the funds you deliver. When your lawyer submits the electronic transfer of the property through the Teranet system, the land transfer tax is calculated and remitted to the province simultaneously. The tax does not need to be physically paid separately — it is part of the electronic registration transaction.

Your lawyer will tell you the exact land transfer tax amount during the closing preparation process, so you know what is included in the total funds you must deliver. First-time buyer rebates are also applied electronically at registration, reducing or eliminating the tax paid. You will see the land transfer tax amount clearly identified in your trust ledger statement after closing.