Land Transfer Tax in Ontario (Plus Toronto’s Additional MLTT)

When you buy your next home in Ontario, Land Transfer Tax (LTT) is one of the biggest line items you’ll pay on closing. If you’re purchasing in the City of Toronto, you’ll also face a municipal LTT on top of the provincial one. Rates are tiered and can change, so the smartest move is to budget conservatively and verify the current numbers with an official calculator before you write an offer. Don’t let a surprise tax bill be what derails a carefully planned transition.

For many buyers, the first question is whether any rebates apply. First-time buyer programs exist, but eligibility can be affected by past ownership anywhere in the world and by the specifics of your relationship history. Separation alone doesn’t automatically restore first-time status, and definitions are technical, so speak with your lawyer or tax professional early if you think you might qualify. Toronto’s municipal rebate is separate from the provincial one, which means you need to understand both if you’re buying inside city limits. Planning with precise definitions beats assuming you’ll figure it out at the lawyer’s office a week before closing.

Because LTT is due at closing, it has to fit inside the cash you bring alongside your down payment and adjustments. If you’re using proceeds from the sale of your current home, map your timing so funds are available when needed. This is where closing-date choreography matters: buy after you sell, use a short bridge loan if you must, and avoid end-of-month crunches where wires can jam up. Your lender and lawyer can help you model what “day of” looks like so you’re not straining at the finish line.

If you’re considering a buy-out instead of listing, remember that taking a spouse off title can trigger different costs than purchasing a brand-new home—and the tax treatment depends on how the transaction is structured. Your professionals will advise on whether LTT applies to the transfer and how equalization payments intersect with the paperwork. It’s not about getting clever; it’s about matching legal form to economic reality so you don’t overpay or accidentally defer a problem.

Budgeting for LTT is also budgeting for peace of mind. When you know the range, the rebate picture, and where the cash will come from, you can make clearer decisions about price, neighborhoods, and timing. In a separation, clarity is kindness—to yourself and to the people helping you move. Verify today’s rates, confirm rebate eligibility, and bake those numbers into the plan. Then you can focus on the home, not the tax. Information only—Ontario-specific. Please obtain legal/tax advice for your situation.