Land Transfer Tax
In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of
Ontario's land registry office.
Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
The land transfer tax payable is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as
part of the arrangement to buy the land. In some cases, land transfer tax is based on the fair market value of the
land, for example, where:
Other Types of Land Taxes
Municipalities impose a yearly municipal property tax on land within the municipality. If you have questions about municipal property tax, you should
contact the municipality in which the land is located. If the land is in an unorganized territory (an area without municipal organization) provincial land tax may apply rather than municipal property tax.
In addition to Ontario's land transfer tax, transfers of land located in the City of Toronto may also be subject to the City of Toronto's own municipal land
transfer tax.
For information on the City of Toronto Municipal Land Transfer Tax:
How much tax do I pay?
If you are a first-time homebuyer, you may be eligible for a refund of all or part of the tax. Learn more
The tax rate has not changed since June 1, 1989. On July 1, 2010, Ontario introduced a federally administered Harmonized Sales
Tax (HST) that applies to most purchases and transactions. The HST applies to newly constructed homes, but does not apply to resale homes. Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home. Learn more
When do I pay the tax?
You must pay Ontario's land transfer tax at the time the transfer is registered. Exemptions from land transfer tax are limited. The main exemptions
include:
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered
with the land registry office.
Ontario's land registry office.
Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
The land transfer tax payable is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as
part of the arrangement to buy the land. In some cases, land transfer tax is based on the fair market value of the
land, for example, where:
- a lease can exceed 50 years;
- land is transferred from a corporation to one of its shareholders; or
- land is transferred to a corporation, if shares of the corporation are
issued.
Other Types of Land Taxes
Municipalities impose a yearly municipal property tax on land within the municipality. If you have questions about municipal property tax, you should
contact the municipality in which the land is located. If the land is in an unorganized territory (an area without municipal organization) provincial land tax may apply rather than municipal property tax.
In addition to Ontario's land transfer tax, transfers of land located in the City of Toronto may also be subject to the City of Toronto's own municipal land
transfer tax.
For information on the City of Toronto Municipal Land Transfer Tax:
- visit their website or
- call 416 338-4829
416 392-0719 for teletypewriter
Monday to Friday,
8:30 a.m. to 4:30 p.m.
How much tax do I pay?
If you are a first-time homebuyer, you may be eligible for a refund of all or part of the tax. Learn more
The tax rate has not changed since June 1, 1989. On July 1, 2010, Ontario introduced a federally administered Harmonized Sales
Tax (HST) that applies to most purchases and transactions. The HST applies to newly constructed homes, but does not apply to resale homes. Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home. Learn more
When do I pay the tax?
You must pay Ontario's land transfer tax at the time the transfer is registered. Exemptions from land transfer tax are limited. The main exemptions
include:
- certain transfers between spouses
- certain transfers from an individual to their family business corporation
- certain transfers of farmed land between family members
- certain transfers of a life lease from a non-profit organization or a charity.
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered
with the land registry office.
