Can investors get the first-time buyer land transfer tax rebate in Ontario?

Generally no. The provincial rebate of up to 4,000 dollars and the Toronto rebate of up to 4,475 dollars require you to be a first-time buyer occupying the home as your principal residence, which excludes most investment purchases.

DeedWorthGuide · Quebec

Ontario Land Transfer Tax in 2026: Rates, the Toronto MLTT, and How Much You'll Actually Pay

Q: How much is land transfer tax in Ontario?

It is tiered: 0.5% up to 55,000 dollars, 1% to 250,000, 1.5% to 400,000, 2% to 2,000,000, and 2.5% above 2,000,000, applied to the purchase price. In Toronto, an equal municipal tax is added on top.

Land transfer tax (LTT) is one of the largest — and most underestimated — closing costs when you buy property in Ontario. Buy in Toronto and you pay it twice: once to the province, once to the city. Here is exactly how it is calculated in 2026, what first-time buyers get back, and how to plan for it.

What is Ontario land transfer tax?

Ontario land transfer tax is a one-time tax you pay when a property changes hands, calculated on the purchase price and collected on closing by your lawyer. It is not financed by your mortgage — you need the cash at closing.

Ontario provincial LTT rates (2026)

The provincial tax is tiered, applied bracket by bracket on the purchase price:

Portion of purchase price	Rate
Up to $55,000	0.5%
$55,000.01 – $250,000	1.0%
$250,000.01 – $400,000	1.5%
$400,000.01 – $2,000,000	2.0%
Over $2,000,000	2.5%

(The 2.5% top bracket applies to properties with one or two single-family residences.)

Buying in Toronto? You pay it twice

The City of Toronto levies its own Municipal Land Transfer Tax (MLTT) on top of the provincial tax, using the same bracket structure — so Toronto buyers effectively pay double the provincial rate on the same price.

As of April 1, 2026, Toronto added graduated luxury tiers on the portion of price above $3 million for homes with one or two single-family residences, ranging from 4.4% to 8.6%. High-value Toronto purchases now carry a materially heavier MLTT than a year ago — a real planning item for anyone buying above $3M.

First-time buyer rebates

First-time buyers can claw back part of the tax:

Provincial rebate: up to $4,000 (fully covers provincial LTT on homes up to ~$368,000).
Toronto MLTT rebate: up to $4,475 (covers the municipal LTT on homes up to $400,000).

To qualify you must generally be 18+, a Canadian citizen or permanent resident, have never owned a home anywhere, occupy the home as your principal residence within 9 months, and your spouse must not have owned a home while your spouse. Note: as an investor buying a rental, you typically will not qualify for these rebates.

Worked example (Toronto, non-first-time buyer)

Purchase price: $900,000 in Toronto.

Provincial LTT, bracket by bracket:

$55,000 × 0.5% = $275
$195,000 × 1.0% = $1,950
$150,000 × 1.5% = $2,250
$500,000 × 2.0% = $10,000
Provincial subtotal = $14,475

Toronto MLTT mirrors the same brackets → another $14,475.

Total land transfer tax ≈ $28,950 on a $900,000 Toronto purchase. Outside Toronto (provincial only), the same home would cost $14,475. That Toronto premium is why location changes your cash-to-close dramatically.

A cost that lowers your future tax

There is an upside for investors: land transfer tax is added to your property's adjusted cost base (ACB), which reduces your capital gain when you eventually sell. Keep the receipt. See our guide to capital gains tax on a rental property.

Build it into your analysis

For an investor, LTT is part of your true cost of acquisition — it changes your cash-on-cash return. DeedWorth includes provincial and municipal land transfer tax in its acquisition-cost calculation, so your return reflects the real closing cost, not an optimistic version without it. Analyze a property with DeedWorth →

FAQ

How much is land transfer tax in Ontario? It is tiered: 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000, and 2.5% above $2,000,000, applied to the purchase price. In Toronto, an equal municipal tax is added on top.

Do I pay land transfer tax twice in Toronto? Effectively yes. Toronto charges a Municipal Land Transfer Tax using the same brackets as the province, so Toronto buyers pay roughly double the provincial amount, plus new luxury tiers above $3 million as of April 1, 2026.

Can investors get the first-time buyer rebate? Generally no. The provincial ($4,000) and Toronto ($4,475) rebates require you to be a first-time buyer occupying the home as your principal residence, which excludes most investment purchases.

When do you pay Ontario land transfer tax? It is paid on closing, handled by your lawyer, and is not covered by your mortgage. Budget for it as cash-to-close.

Is land transfer tax deductible? Not against rental income in the year of purchase, but it is added to your property's adjusted cost base, reducing your taxable capital gain when you sell.

Related guides

This article is for information only and is not tax or legal advice. Rates change and municipal rules vary; confirm with the Province of Ontario, the City of Toronto, and your lawyer. Last verified: June 2026.