The land transfer tax in Ontario for 2025 is a marginal tax calculated based on the purchase price of the property with the following rates:
- 0.5% on the first $55,000 of the purchase price
- 1.0% on the portion between $55,000.01 and $250,000
- 1.5% on the portion between $250,000.01 and $400,000
- 2.0% on the portion between $400,000.01 and $2,000,000
- 2.5% on the portion over $2,000,000
For example, on a $500,000 property, the land transfer tax would be calculated as:
- 0.5% on $55,000 = $275
- 1.0% on $195,000 ($250,000 - $55,000) = $1,950
- 1.5% on $150,000 ($400,000 - $250,000) = $2,250
- 2.0% on $100,000 ($500,000 - $400,000) = $2,000
Total land transfer tax = $6,475.
