Land transfer tax on pre-construction in Ontario and Toronto
By Dinesh Jindal, licensed REALTOR® · Reviewed November 2026
Land transfer tax is paid by the buyer when title transfers. In the City of Toronto you pay it twice: provincial and municipal.
Ontario rates (one- and two-family homes)
| Portion of price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Toronto's municipal tax uses similar brackets, with higher rates on luxury tiers.
First-time buyer refunds
- Ontario: up to $4,000
- Toronto: up to $4,475 off the municipal tax
You must meet the first-time buyer conditions (including living in the home).
Timing on pre-construction
- Condos: paid at final closing after registration.
- Freehold: paid on closing.
Your lawyer collects and remits it as part of closing. Use the mortgage calculator to plan, or book a call.
Quick answers
When is land transfer tax paid on a new condo?
At final closing, when title transfers after the condominium is registered. It is not paid at interim occupancy.
How much is the first-time buyer refund?
Ontario refunds up to $4,000 of provincial land transfer tax. In the City of Toronto, first-time buyers also get up to $4,475 off the municipal land transfer tax.
Do I pay Toronto land transfer tax outside Toronto?
No. The municipal land transfer tax applies only to properties in the City of Toronto.
General information, not legal, tax or financial advice. Programs, limits and rebates change; confirm current rules with Dinesh Jindal, your real estate lawyer and your mortgage professional before you sign.