Ontario Land Transfer Tax on New Homes: Yes, You Pay

Yes. Ontario's Land Transfer Tax (LTT) applies to *all* transfers of beneficial interest in land — including brand-new homes from builders. No exemption for "new."

How It's Calculated (2024 Rates)

Provincial LTT (all Ontario):
• 0.5% on first $55,000
• 1.0% on $55,000–$250,000
• 1.5% on $250,000–$400,000
• 2.0% on $400,000–$2,000,000
• 2.5% on amount over $2,000,000

Toronto Municipal LTT (additional, same brackets): Doubles the tax within Toronto.

Example: $800,000 New Home

Provincial: $275 + $1,950 + $2,250 + $8,000 = $12,475
Toronto Municipal: +$12,475 = $24,950 total

Rebates & Exemptions

First-time homebuyers: Up to $4,000 provincial rebate (covers first $368,333). Toronto: additional up to $4,475. Must occupy within 9 months.
Newly built homes: HST (13%) *includes* LTT in builder's price — but buyer still pays LTT on closing. Builder may offer "LTT included" promotions — verify if rebate assigned to you.

Payment

Due at closing. Lawyer/notary remits to province/municipality. Use Ontario LTT calculator for exact figure.

New Housing Rebate (HST)

Separate from LTT: Federal (GST 5%) + Provincial (8%) = 13% HST on new homes. Rebates up to $24,000 (federal) + $24,000 (provincial) for homes <$450K/$350K. Builder usually claims — confirm assignment.

Budget for LTT — it's a closing cost, not a builder cost.