Land Transfer Tax in Ottawa, Ontario

What is a land transfer tax?

Whenever you buy a piece of land or an interest in Ontario, you have to pay the province’s land transfer tax. Buildings, buildings that are not yet constructed, and fixtures such as cabinetry and lighting are included under the term “land.”

Who has to pay a land transfer tax?

Anybody who acquires a piece of land or a beneficial interest in land must pay this tax to the province upon completion of the sale.

For a registered transfer, the tax is payable when, or before, the transfer is tendered for registration, which in practice is on closing (Land Transfer Tax Act, s. 2(1)).

How much do I have to pay in land transfer taxes?

This figure is based on the amount that you paid for the land itself, as well as the remaining balance on any mortgage or debt that was accrued as a part of the arrangement when you bought the land. In some cases, land transfer taxes can be based on the fair market value of the land. Here are a few examples of when this might happen.
– When a lease is transferred with a remaining term that can exceed fifty years
– When land is transferred from a corporation to one of its shareholders
– When land is transferred to a corporation and any part of the price is paid by the corporation issuing its own shares

Ontario land transfer tax rates

For a conveyance registered on or after January 1, 2017 (LTTA s. 2(1)):

• 0.5% of the value of the consideration up to and including $55,000

• 1% of the amount over $55,000, up to and including $250,000

• 1.5% of the amount over $250,000, up to and including $400,000

• 2% of the amount over $400,000

• plus an additional 0.5% of the amount over $2,000,000 where the land contains at least one and not more than two single family residences

Example from the Ministry of Finance: on $400,000, the tax is $275 + $1,950 + $2,250 = $4,475. Ontario's land transfer tax applies across the province, including in Ottawa.

First-time home buyers

If you are buying a home for the first time, you could be eligible for a refund of at least part of the land transfer tax. Some people get a complete refund.

For a transfer on or after January 1, 2017, the maximum refund is $4,000 (LTTA s. 9.2(2.1)(b)), so a qualifying buyer pays no tax on the first $368,000 (Ministry of Finance). To qualify, a purchaser must be at least 18, a Canadian citizen or permanent resident (or become one within 18 months of the transfer, LTTA s. 9.2(2.0.1)), and must never have owned an eligible home anywhere in the world; a spouse must not have owned one while being your spouse (LTTA s. 9.2(1), "purchaser"). The buyer must also occupy the home as a principal residence within nine months. The refund can be claimed on registration, or by application within 18 months (Ministry of Finance).

Paying land transfer taxes

Land transfer tax in Ontario can be paid when the transfer is registered. If the transfer is not registered within a month’s span, you must submit a Return on the Acquisition of a Beneficial Interest in the Land form to the Ministry of Finance. The tax and return are due on the 30th day after the date of the disposition.

General information about Ontario law as of October 2026, not legal advice. Questions about your purchase? Contact our Ottawa office at (613) 226-1011.