When buying a home, one of the significant costs you’ll need to consider is the land transfer tax. This tax is levied by the provincial government and varies by location, making it essential to plan for this expense as part of your home purchase budget.

In Ontario, the tax is calculated based on the home’s purchase price, using a tiered structure:

0.5% on the first $55,000
1.0% on the next $195,000 (from $55,000 to $250,000)
1.5% on the next $150,000 (from $250,000 to $400,000)
2.0% on any amount above $400,000

Additionally, first-time homebuyers may qualify for a rebate, helping reduce the cost of this tax. For example, the Ontario Land Transfer Tax Refund for first-time buyers can provide up to $4,000 in savings.

Other costs associated with buying a home include closing costs like legal fees, home inspections, and appraisals, which can add up to 5% of the home’s purchase price.

Use our land transfer tax calculator to estimate your tax liability and better prepare for the financial commitment of purchasing a home.

Contact us to explore your options and receive guidance on managing your costs effectively.