Land transfer tax is payable on every conveyance of land tendered for registration and every unregistered disposition of a beneficial interest in land, unless specifically exempt under the Act or regulations.

The definition of land as defined in subsection 1(1) of the Act is broad and includes lands, buildings, structures, structures to be constructed, fixtures and any interest in these.

Land transfer tax is calculated on the value of the consideration as defined in subsection 1(1) of the Act. It includes the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades. In some instances, the value of the consideration is deemed to be the fair market value of the land. For example, leases with terms that can exceed fifty years and certain transfers between corporations and shareholders.

For the definitions of value of the consideration and land, please see Definitions or the Act.

Tax rates

Effective January 1, 2017, the tax rates for land transfer tax will depend on the date of the agreement of purchase and sale.

If an agreement of purchase and sale is entered into after November 14, 2016, and registration or the disposition occurs on or after January 1, 2017, the tax rates on the value of the consideration are as follows:

  • amounts up to and including $55,000: 0.5%
  • amounts exceeding $55,000, up to and including $250,000: 1.0%
  • amounts exceeding $250,000, up to and including $400,000: 1.5%
  • amounts exceeding $400,000: 2.0%
  • amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%.

For the definition of single family residence, see Definitions or the Act. For the purposes of the Act, single family residences include cottages, cabins and other similar structures that are designed for occupation as the residence of a family, whether or not that family has a residence elsewhere and whether or not the structure is habitable for only part of the year. The zoning designation of the land is irrelevant for establishing whether a structure is a single family residence. Single family residences do not include a residence on agricultural land that is eligible to be classified in the farm property class prescribed by the Assessment Act.

First-time buyers may be eligible for a rebate of the provincial and municipal (Toronto) land transfer taxes, to a maximum of $4,000 of the payable provincial land transfer tax and $4,475 of the payable municipal land transfer tax (Toronto), respectively. 

For more details on first-time buyer rebate rules and eligibility, visit the Ministry of Finance web site (provincial LTT) and the City of Toronto web site (municipal LTT).


NEW Toronto LTT rules: