Short answer
Ontario land transfer tax is usually paid on closing through the buyer's lawyer. First-time buyers may qualify for a refund up to the program cap, but that refund is separate from federal or Ontario GST/HST rebate eligibility.
What does this page answer?
Estimate Ontario land transfer tax and first-time home buyer refund as part of a broader cash-to-close calculation.
- Progressive Ontario LTT brackets are modelled in the cash-to-close ledger.
- The first-time buyer refund is capped and shown separately.
- Toronto buyers should also model municipal land transfer tax.
Why does land transfer tax matter for cash to close?
Land transfer tax is not a future rebate timing issue in the same way GST/HST can be. It is generally part of the lawyer's closing funds request, so the calculator treats it as closing-day cash.
Does the refund make the tax zero?
The first-time buyer refund is capped. At higher purchase prices, buyers can still owe net Ontario LTT after the refund.
Example Ontario LTT estimate
| Purchase price | $950,000 |
|---|---|
| Gross Ontario LTT | $15,475 |
| First-time buyer refund | Up to $4,000 |
| Net Ontario LTT | $11,475 |
Frequently asked
Is Ontario land transfer tax paid at closing?
Yes, it is generally a closing cost handled by the lawyer and should be included in cash-to-close planning.
Does the Ontario LTT refund cover the full tax?
Only up to the program cap. Higher purchase prices can still have a net Ontario LTT amount after the refund.