Do You Pay Land Transfer Tax When You Inherit a House in Ontario?

When someone dies owning a house in Ontario, the family often wants the house to end up in one heir's name. A common worry is whether that move triggers land transfer tax, on top of the other costs of settling an estate.

The short answer is that a simple transfer from the estate to an heir is usually not taxed. But a mortgage, or money changing hands between heirs, can change that. This article walks through how it works so you know what to ask before you sign anything.

Who owns the house right after death

On death, the person's real and personal property passes to and vests in the personal representative, called the estate trustee. The estate trustee holds it as trustee for the people entitled to it. So the house does not automatically become the heir's. It sits with the estate trustee first.

Real property is also administered like other property and is liable in the same way for the deceased's debts, costs and expenses. In other words, a deceased person's house is available to pay estate debts. How that affects the timing of any transfer to an heir depends on your situation, so it is worth confirming with a lawyer.

The usual rule: a transfer to a beneficiary is taxed at nil

A conveyance from a personal representative to a beneficiary who receives the property in satisfaction of all or part of their beneficial interest in the estate is not taxed. Consideration is shown as "nil" in the land transfer tax affidavit.

In plain words, if the will leaves the house to you and the estate trustee transfers it to you as your inheritance, nothing is being bought or sold. You are receiving what you were already entitled to, so there is no price to tax.

When a land transfer tax bill can still arise

The nil treatment applies only where no consideration of any kind passes. Two situations come up most often.

On mortgages, unless the deceased showed a contrary intention, the beneficiary of mortgaged property takes it primarily liable for the mortgage debt. A general direction in the will to pay debts does not displace that rule. A secured creditor such as a mortgage lender also keeps its security against the property. So an inherited house with a mortgage often comes with the mortgage attached, and the balance outstanding at registration is what matters for tax.

How much tax is owed in these cases depends on the amounts involved and how the transfer is structured. A lawyer or accountant can confirm the figure before you commit to a buyout or a mortgage arrangement.

Certificate of appointment and registration fees

Ontario guidance says probate, meaning a Certificate of Appointment of Estate Trustee from the Superior Court of Justice, is normally required where the deceased owned real property. If the property must be sold, the certificate should be obtained before anyone enters into an agreement of purchase and sale.

There is an exception. For Land Titles Conversion Qualified properties, transmission applications generally do not require a certificate when it is the first dealing since the Ministry converted the property from Registry to Land Titles. A covenant to indemnify the Land Titles Assurance Fund must be provided whenever a certificate is not applied for. Whether the exception applies to your property depends on the facts, and buyers' lawyers and title insurers may set their own requirements, so it is worth confirming with a lawyer.

Registering an electronic document, such as a transmission, survivorship application or transfer, cost $85.00 from November 3, 2025. From November 2, 2026, the fee is $86.42, made up of a $72.75 statutory fee, a $12.10 ELRSA fee and $1.57 HST. Whether any other costs apply to your transfer depends on your situation, so it is worth confirming with a lawyer.

What to do next

• Find out whether the house has a mortgage and get the balance outstanding.
• Check whether the will leaves the house to one person or several, and whether anyone plans to buy out the others.
• Confirm whether a Certificate of Appointment of Estate Trustee is needed, or whether the first-dealing exception could apply.
• Ask the lawyer preparing the transfer how consideration will be shown in the land transfer tax affidavit.
• Budget for the electronic registration fee for each document that is registered.

If the transfer is a straightforward inheritance with no mortgage assumed and no payments between heirs, the tax position is usually simple. If either of those is present, speak with a lawyer before signing.

Frequently asked questions