Who pays the land transfer tax when buying a home in Ontario?

In Ontario, the buyer pays land transfer tax (LTT) when a property is conveyed. The tax is calculated on a sliding scale based on the purchase price. Most properties in Ontario are subject only to the provincial LTT, but if you are buying within the City of Toronto, a second, municipal land transfer tax applies on top of the provincial one.

The provincial rate starts at 0.5% on the first $55,000, rises to 1.0% up to $250,000, then 1.5% up to $400,000, and 2.0% above $400,000 (with a higher rate for residential properties over $2,000,000). Toronto's municipal LTT follows a similar graduated structure.

First-time buyers may qualify for a rebate — speak with your lawyer before closing so the refund can be applied directly against the tax owed rather than claimed afterward.