Ontario Land Transfer Tax

Land Transfer Tax Calculator

Calculation example

For a transfer of land or disposition of beneficial interest in land in which the value of the consideration equals $400,000:

multiply $55,000 by 0.5% (55,000 × 0.005) = $275
multiply the amount exceeding $55,000 up to $250,000 by 1.0% (195,000 × 0.01) = $1,950
multiply the amount exceeding $250,000 up to $400,000 by 1.5% (150,000 × 0.015) = $2,250.

Total land transfer tax payable = $4,475.

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.

Transitional tax rates

The following rates of land transfer tax apply to all registrations and dispositions that occur prior to January 1, 2017. Tax is calculated on the value of the consideration at the following rates:

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: 1.5%
amounts exceeding $400,000, where the land contains one or two single family residences: 2.0%.

For transfers with agreements of purchase and sale that were entered into on or before November 14, 2016, the above rates will apply regardless of the date of registration or disposition.

Effective October 25, 2022, the Non-Resident Speculation Tax (NRST) rate was increased to 25 per cent. The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees. The NRST applies in addition to the general Land Transfer Tax in Ontario.

Read on: Non-Resident Speculation Tax

This page provides general guidelines on the calculation of land transfer tax payable on every registration and disposition of land in Ontario.

The information on this page does not replace the law found in the Land Transfer Tax Act (Act) and related regulations.

Quick calculation formula

Formula for quick calculation of land transfer tax

For a quick calculation of land transfer tax, refer to the following formulae. Value of the consideration for a conveyance or disposition is shown as VOC. Land transfer tax payable is shown as LTT. Single family residence as defined in the Act is shown as SFR.

Tax rates

If the agreement of purchase and sale was entered into after November 14, 2016, the tax rates for registrations or dispositions that occur on or after January 1, 2017, are as follows:

For the value of the consideration:

up to and including $55,000: LTT = VOC × 0.005
exceeding $55,000, and up to $250,000: LTT = (VOC × 0.01) – $275
exceeding $250,000, and up to $400,000: LTT = (VOC × 0.015) – $1,525
exceeding $400,000, for property other than property with one or two SFRs: LTT = (VOC × 0.02) – $3,525
exceeding $400,000, and up to $2,000,000, for property with one or two SFRs: LTT = (VOC x 0.02) – $3,525
for property with one or two SFRs exceeding $2,000,000: LTT = (VOC × 0.025) – $13,525.

Transitional tax rates

If the agreement of purchase and sale was entered into:

after November 14, 2016, and registration or disposition occurs before January 1, 2017, or
on or before November 14, 2016, regardless of the date of registration or disposition:

For the value of the consideration:

up to and including $55,000: LTT = VOC × 0.005
exceeding $55,000, and up to $250,000: LTT = (VOC × 0.01) – $275
exceeding $250,000, for property other than property with one or two SFRs: LTT = (VOC × 0.015) – $1,525
exceeding $250,000, and up to $400,000, for property with one or two SFRs: LTT = (VOC × 0.015) – $1,525
for property with one or two SFRs exceeding $400,000: LTT = (VOC × 0.02) – $3,525.

Introduction

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.

Vacant lot with a construction contract

Where a construction contract is entered into as part of the arrangement relating to the purchase of a vacant lot or lots, the value of the consideration is calculated on the:

total cost of the lot, plus
cost of construction contract.

Value of consideration in foreign currency

All monies must be expressed in Canadian dollars. The land transfer tax statements must set out the value of the consideration in Canadian dollars. The date of currency conversion should be the:

date that the agreement of purchase and sale is accepted and becomes a binding contract, or
date of registration if there is no written agreement.