Home buying costs in Ontario
Land transfer tax, registration fees and closing costs in Ontario, calculated from the province's own published schedule.
Land transfer tax
The top 2.5% band applies only where the land holds one or two single-family residences. Other property types stay at 2% above $400,000.
| On the portion | Rate |
|---|---|
| $0 to $55,000 | 0.50% |
| $55,000 to $250,000 | 1.00% |
| $250,000 to $400,000 | 1.50% |
| $400,000 to $2,000,000 | 2.00% |
| Above $2,000,000 | 2.50% |
| Purchase price | Transfer tax |
|---|---|
| $400,000 | $4,475 |
| $650,000 | $9,475 |
| $900,000 | $14,475 |
| $1,200,000 | $20,475 |
Municipalities that charge their own
Toronto
Charged on top of the provincial tax, and levied in Toronto alone. Nowhere else in Ontario has a municipal land transfer tax, which is why an identical house costs several thousand dollars more to buy here than in the next municipality.
On a $650,000 purchase that comes to $9,475, on top of the $9,475 provincial tax.
Sales tax on the mortgage insurance premium
Ontario charges 8% sales tax on the mortgage default insurance premium. The premium itself is normally added to the mortgage; this tax cannot be, and is due in cash on closing day.
First-time buyers
- Provincial refund. Up to $4,000 of the provincial land transfer tax, which covers the tax in full below $368,000 and takes $4,000 off it above. Read the rules
Sales tax on a vehicle
A single 13% harmonized sales tax. A trade-in comes off the price before tax is charged. See the car payment calculator.
Work it out for your own purchase
Income tax differs by province too, and it changes what you actually have to spend far more than transfer tax does.
Sources
- Calculating Land Transfer Tax · Ontario Ministry of Finance · checked
- Retail Sales Tax: insurance and benefits plans · Government of Ontario · checked