When exactly must land transfer tax be paid in Ontario?

Ontario land transfer tax becomes payable on the date that the transfer is tendered for registration in the land registry system. In practice, this means LTT is due at closing — your real estate lawyer collects the funds from you before the deal closes and remits the tax electronically through the Teranet e-registration system at the time of registration.

You cannot register a deed without first paying the LTT. The system is designed so that payment and registration happen simultaneously — the LTT statement is completed and the tax is submitted electronically as part of the electronic deed registration process.

Because LTT is due at the moment of registration, you must have these funds available before closing day — not just after. Your lawyer will provide you with an accurate LTT calculation in advance as part of the statement of adjustments so you can arrange the full closing funds, including LTT, to be in the lawyer's trust account before closing.