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Summary: When you buy a home in Ontario you'll pay Ontario land transfer tax (and a second, municipal land transfer tax if the home is in Toronto). HST applies to new-build and substantially-renovated homes, not to typical resale homes. Foreign buyers also pay the 25% Non-Resident Speculation Tax. First-time buyers can claim a land transfer tax rebate of up to $4,000.
What taxes do you pay when buying a home in Ontario?
The taxes you owe depend on the price of the home, where it is, whether it's new or resale, and whether you're a resident of Canada. The main ones are the Ontario land transfer tax (everyone), a municipal land transfer tax (Toronto only), HST (new-build and substantially-renovated homes), and the Non-Resident Speculation Tax (foreign buyers). Each is covered below, with the figures current as of 2026.
How much is land transfer tax in Ontario?
Most Ontario home purchases require provincial land transfer tax (LTT), which your lawyer collects and remits to the Ministry of Finance on closing. For transactions closing after January 1, 2017 it is calculated on the purchase price as follows:
Up to and including $55,000: 0.5%
$55,000 to $250,000: 1.0%
$250,000 to $400,000: 1.5%
Over $400,000: 2.0%
Over $2,000,000 (land with one or two single-family residences): 2.5%
On an $800,000 home, that works out to $12,475. First-time buyers can claim a rebate of up to $4,000, which would bring that to $8,475. To qualify for the first-time rebate, you must be at least 18, occupy the home as your principal residence within nine months of closing, and never have owned a home (or an interest in one) anywhere in the world. If you have a spouse, they cannot have owned a home while they were your spouse. Estimate your own amount with the Ontario land transfer tax calculator.
Do you pay extra land transfer tax in Toronto?
Yes. If the home is in the City of Toronto, a Municipal Land Transfer Tax (MLTT) applies on top of the provincial LTT, using the same rate brackets, so a Toronto buyer pays roughly double. On that $800,000 example, the municipal portion is about another $12,475. Toronto is currently the only Ontario municipality with its own land transfer tax, and it offers its own first-time buyer rebate (up to $4,475) in addition to the provincial one.
When does HST apply to a home purchase?
HST generally does not apply to resale residential homes. It does apply to a newly built home, a substantially renovated home (a resale home stripped to the studs and roughly 90% rebuilt), commercial property, and the commercial portion of a mixed-use property. On a farm, HST applies to the value of the worked farmland but not to the residence or the surrounding non-farming land.
Buyers of a new-build home may be eligible for a partial HST rebate of up to $24,000, provided the home is used as the principal residence of the buyer or their immediate family (related by blood, marriage, common-law partnership, or adoption) after closing.
What is the Non-Resident Speculation Tax?
The Non-Resident Speculation Tax (NRST) applies to residential property bought anywhere in Ontario by a foreign national (someone who is not a Canadian citizen or permanent resident), a foreign corporation, or a taxable trustee, at a rate of 25% of the purchase price. The rate was 15% when introduced in 2017, rose to 20% in March 2022, and increased to 25% on October 25, 2022.
The NRST applies to "designated land" containing at least one and not more than six single-family residences (a detached house, semi, townhouse, condo unit, or up to a sixplex). It does not apply to apartment buildings with more than six units, or to agricultural, commercial, or industrial land. Every transferee is jointly and severally liable, so if a foreign buyer does not pay it, the other buyers must, even if they are Canadian. Certain exemptions exist, including for some refugees and nominees.
What taxes apply when you sell?
A few taxes can apply on the sale side:
HST on services. HST is generally not charged on the sale of a used home, but it does apply to the services around your sale, including legal fees and disbursements, real estate commission, and a condo status certificate.
Non-resident seller withholding. If the seller is a non-resident of Canada, the buyer must withhold and remit roughly 25% of the gross sale price to the Canada Revenue Agency under section 116 of the Income Tax Act. Your lawyer handles this when a seller discloses non-resident status.
Capital gains. If the property was not your principal residence, you pay tax on a portion of the gain at your marginal rate. For most individuals the inclusion rate is 50% (half the gain is taxable). The rules for very large annual gains (over $250,000) have changed recently, so confirm your situation with a tax accountant.
Frequently asked questions
How much is land transfer tax on an $800,000 home in Ontario?
The provincial land transfer tax is $12,475, or $8,475 for a first-time buyer after the $4,000 rebate. In Toronto, add a municipal land transfer tax of roughly the same amount (with its own first-time rebate).
What is the first-time home buyer land transfer tax rebate in Ontario?
First-time buyers can claim up to $4,000 off the provincial land transfer tax. You must be 18 or older, move in as your principal residence within nine months, and never have owned a home anywhere; spousal ownership can disqualify you.
Do you pay HST when buying a house in Ontario?
Not on a typical resale home. HST applies to new-build and substantially-renovated homes, and buyers of a new build may qualify for a rebate of up to $24,000 if it's their principal residence.
What is the Non-Resident Speculation Tax in Ontario?
It's a 25% tax on residential property bought by foreign nationals, foreign corporations, or taxable trustees anywhere in Ontario, on top of regular land transfer tax.
Do you pay tax when you sell your home in Ontario?
If the home was your principal residence, generally no capital gains tax. If it wasn't, you pay tax on part of the gain. Non-resident sellers also face a 25% CRA withholding on the gross sale price.
About the author
Benjamin Berry is a co-founder and principal lawyer at Ownright. He works on Ontario residential closings and writes to make the costs and taxes of buying a home clear before closing day.
At Ownright, we focus entirely on Ontario residential real estate law. We help homeowners with purchase closings, refinancing, and sales, pairing a simple online platform with licensed Ontario lawyers who calculate exactly what you owe before you close. You can start your closing online or get in touch with any questions. For related reading, see our guides on the first-time home buyer land transfer tax rebate, first-time home buyer incentives in Ontario, and the Toronto vacant home tax.
Legal references: Land Transfer Tax Act (Ontario); Taxation Act, 2007 (Ontario) and O. Reg. 182/17 (Non-Resident Speculation Tax); Excise Tax Act (Canada) (HST and new housing rebate); Income Tax Act (Canada), s. 116 (non-resident dispositions).
Important note: This article is not legal or tax advice. No one should act, or refrain from acting, based solely on the information in this post without first seeking appropriate professional advice.
