Who Pays the Ontario Land Transfer Tax (LTT)

by Ana Bastas

In Ontario, the Ontario Land Transfer Tax (LTT) is typically paid by the buyer of the property. It is a tax imposed by the provincial government on the transfer of real estate property, and it is payable upon the purchase or acquisition of land or an interest in land within the province.

The buyer is responsible for paying the Ontario LTT unless the purchase agreement stipulates otherwise. The tax is calculated based on the purchase price of the property and is due at the time of closing.

It's important for buyers to budget for the Ontario LTT as part of their overall closing costs when purchasing a property in Ontario. The LTT rates are tiered, meaning that different rates apply to different portions of the purchase price, and the amount payable can vary based on the value of the property.

While the buyer is typically responsible for paying the Ontario LTT, there are certain situations where exemptions or rebates may apply. For example, first-time homebuyers may be eligible for a rebate of up to $4,000 of the Ontario LTT. Additionally, certain transfers between spouses, transfers to a trust, or transfers of agricultural land may be exempt from the tax.

It's important for buyers to consult with a real estate professional or tax advisor to understand their obligations regarding the Ontario LTT and any applicable exemptions or rebates based on their specific circumstances.