Who is responsible for paying land transfer tax in Ontario?

In Ontario, land transfer tax (LTT) is paid by the buyer — not the seller — on every purchase of land or an interest in land. It is due on the date the transfer is registered in the land registry and is collected at closing, typically through your real estate lawyer.

The tax applies to most transactions including houses, condos, vacant land, and commercial properties. It is calculated on the "value of the consideration" — generally the purchase price — using a graduated rate schedule set by the provincial government. Higher-value properties pay a higher marginal rate on the upper portions of the price.

If you are buying property in Toronto, you will also owe a separate municipal land transfer tax on top of the provincial amount. Outside Toronto, no other Ontario municipality currently imposes a second land transfer tax. Speak with a lawyer before closing to understand your exact LTT obligation.