Buying in Leslieville and trying to budget your closing costs? The land transfer tax can feel like a surprise line item when you run the numbers. You want a clear, local guide so you can plan ahead and avoid last‑minute stress. In this post, you’ll see how Toronto and Ontario land transfer taxes work, what first‑time buyer rebates can save you, and real examples using east‑end price points. Let’s dive in.
What you pay in Toronto
Two land transfer taxes
If you buy a home in the City of Toronto, you normally pay two separate land transfer taxes on closing:
- The provincial Land Transfer Tax, set by Ontario.
- The municipal Land Transfer Tax, set by Toronto.
Both are calculated on the purchase price and are collected at closing by your lawyer. You can see the official rules for the municipal tax on the City’s page for the City of Toronto land transfer tax, and the provincial rules on the Ontario land transfer tax page.
Who pays and when
You, the buyer, pay these taxes on closing. Your lawyer typically calculates the amounts, claims any eligible rebates, and remits the net taxes when the deed is registered.
Special cases to check
- Non‑resident buyers may also face the provincial Non‑Resident Speculation Tax if applicable. This is in addition to both land transfer taxes.
- Purchases by corporations, assignments, certain new‑build deals, and transfers within families can trigger different rules. Always confirm with your lawyer.
How the taxes are calculated
Both taxes use a tiered system. You pay one rate on the first slice of the price, a higher rate on the next slice, and so on. Property type does not change the calculation. Condos, townhouses, and detached homes are all calculated the same way based on the purchase price.
Ontario provincial LTT rates
- 0.5% on the first $55,000
- 1.0% on the portion from $55,000.01 to $250,000
- 1.5% on the portion from $250,000.01 to $400,000
- 2.0% on the portion above $400,000
For full details and examples, check the Province’s guide to the Ontario land transfer tax.
City of Toronto LTT rates
- 0.5% on the first $55,000
- 1.0% on the portion from $55,000.01 to $250,000
- 1.5% on the portion from $250,000.01 to $400,000
- 2.0% on the portion from $400,000.01 to $2,000,000
- 2.5% on the portion above $2,000,000
See the City’s official page for rates, rebates and forms on the City of Toronto land transfer tax.
Quick way to estimate
- Estimate the provincial tax using the provincial tiers.
- Estimate the municipal tax using the same tiers up to $400,000, then the City’s higher tiers beyond that.
- Add the two results together for your combined tax before any rebates.
If you are a first‑time buyer, calculate rebates last and subtract them from the totals.
First‑time buyer rebates
How much you could save
If you qualify as a first‑time home buyer, you may be eligible for:
- Provincial rebate up to $4,000.
- City of Toronto rebate up to $4,475.
That is a combined potential savings of up to $8,475 in Toronto, subject to your actual tax owing and meeting eligibility rules. Learn more about the provincial program on the Ontario first‑time home buyer rebate page, and the City’s process on the City of Toronto land transfer tax page.
Common eligibility rules
- You and your spouse or partner must meet the first‑time buyer tests. Generally, neither of you can have owned an interest in a qualifying home anywhere in Canada.
- You must occupy the property as your principal residence within a set period.
- You must be a Canadian citizen, permanent resident, or otherwise lawfully admitted for permanent residence. Some nuance applies.
- Corporate buyers are typically not eligible.
Your lawyer will confirm eligibility and prepare the required statements.
How the rebate is claimed
- Most buyers have their lawyer claim the rebate at closing, so only the net tax is paid.
- If you do not claim at closing, you can usually apply for a refund directly to the Province or City using their official forms. Ask your lawyer about deadlines and documents.
Leslieville price examples
Below are sample calculations based on typical east‑end price points. These assume you pay both provincial and municipal taxes, and that you qualify for the full first‑time buyer rebates. Amounts are rounded to the nearest dollar.
Example A: $600,000 condo
- Provincial LTT:
- 0.5% of $55,000 = $275
- 1.0% of next $195,000 = $1,950
- 1.5% of next $150,000 = $2,250
- 2.0% of remaining $200,000 = $4,000
- Provincial total = $8,475
- Municipal LTT = $8,475
- Combined before rebates = $16,950
- Less first‑time rebates = $8,475
- Net LTT payable = $8,475
Example B: $1,100,000 townhouse
- Provincial LTT = $18,475
- Municipal LTT = $18,475
- Combined before rebates = $36,950
- Less first‑time rebates = $8,475
- Net LTT payable = $28,475
Example C: $1,600,000 detached home
- Provincial LTT = $28,475
- Municipal LTT = $28,475
- Combined before rebates = $56,950
- Less first‑time rebates = $8,475
- Net LTT payable = $48,475
Example D: $2,200,000 home
- Provincial LTT = $40,475
- Municipal LTT:
- Provincial‑style tiers up to $400,000 = $4,475
- 2.0% on $1,600,000 = $32,000
- 2.5% on $200,000 = $5,000
- Municipal total = $41,475
- Combined before rebates = $81,950
- Less first‑time rebates = $8,475
- Net LTT payable = $73,475
These examples show how combined LTT rises quickly with price in Toronto, which is common across Leslieville and nearby east‑end neighborhoods.
Plan your closing costs
What to do first
- Set your target purchase price and use the tiered rates to estimate both taxes.
- Ask your lender and lawyer for an itemized estimate of total closing funds, including LTT, legal fees, and adjustments.
- If you think you are a first‑time buyer, confirm eligibility early and gather documents for your lawyer.
Special situations
- If buying as a corporation, know that first‑time rebates do not apply.
- Assignments, some new‑builds, family transfers, or power‑of‑sale situations can have different tax steps. Get legal advice.
- If you are a non‑resident or foreign national, review the Non‑Resident Speculation Tax rules and any exemptions.
Keep your numbers current
Price trends shift. Before you lock in a budget, review the latest east‑end figures from the Toronto Regional Real Estate Board. You can start with the TRREB market reports and ask your agent for a current Leslieville snapshot to update the examples above.
Local insight for east‑end buyers
Buying in Leslieville is about getting the numbers right and the lifestyle fit right. A clear estimate of your land transfer tax helps you set a confident budget, choose stronger offer terms, and avoid scrambling for funds on closing day. With a plan in place, you can focus on the home itself.
If you want a walkthrough of your closing costs, your first‑time buyer rebate status, and a price‑specific estimate for a condo, townhouse, or detached home in Leslieville, reach out anytime. As a local, boutique team, we combine neighborhood knowledge with a patient, step‑by‑step process to help you buy with confidence.
Ready to run the numbers for a specific home or street? Connect with Derek Ladouceur for a simple closing‑cost estimate, local comps, and a smart plan for your next move.
FAQs
What land transfer taxes apply when buying in Toronto?
- You pay both the Ontario provincial land transfer tax and the City of Toronto municipal land transfer tax on most residential purchases in Toronto.
How is the City of Toronto land transfer tax calculated?
- It uses tiered rates that mirror the province up to $400,000 and then applies 2.0% up to $2,000,000 and 2.5% above that.
Who qualifies for first‑time buyer land transfer tax rebates?
- Generally, you and your spouse must not have owned a qualifying home before, you must occupy the home as your principal residence, and you must meet citizenship or permanent resident criteria.
How much can first‑time buyers save on land transfer tax in Toronto?
- Up to $4,000 off the provincial tax and up to $4,475 off the municipal tax, for a combined potential savings of up to $8,475.
When do I pay land transfer tax in Ontario and Toronto?
- Your lawyer collects and remits the taxes on closing when the property is registered, often after applying any eligible rebates.
Do condos and houses pay the same land transfer tax in Toronto?
- Yes. The calculation is based on the purchase price, not the property type, unless a specific exemption applies.
