Learn about Land Transfer Tax and Non-Resident Speculation Tax.
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O. Reg. 343/18: Timing of Tax Payable Under Subsection 3(2) of the Act was filed on April 26, 2018 to provide quarterly reporting periods for Land Transfer Tax on qualifying unregistered dispositions of a beneficial interest in land. Further information about the new quarterly reporting period rules is provided on the ministry webpage entitled: Quarterly Reporting Periods for Land Transfer Tax on Qualifying Unregistered Dispositions of a Beneficial Interest in Land.
Effective October 25, 2022, the Non-Resident Speculation Tax (NRST) rate was increased to 25 per cent. The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees.
Commencing on October 28, 2022, new provincial land transfer tax statements are being incorporated into Teraview, Ontario's electronic land registration system. Corresponding statements have been added to Ontario's affidavits and forms. More information may be found on the following webpages:
When you buy land or an interest in land in Ontario, you pay Ontario's land transfer tax. Land includes, but is not limited to, any buildings, buildings to be constructed, and fixtures (such as light fixtures, built‑in appliances and cabinetry). In addition, for certain transfers of land, a 25 per cent Non‑Resident Speculation Tax (NRST) may apply.
When you acquire land or a beneficial interest in land, you pay land transfer tax to the province when the transaction closes.
Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.
In some cases, land transfer tax is based on the fair market value of the land, such as in the following examples:
On April 24, 2017, the province began collecting additional information to better understand trends in the housing market through the land transfer tax system. This additional data will be used for the administration and enforcement of the Land Transfer Tax Act, and to support evidence based policy development with respect to Ontario's real estate market.
All persons who purchase or acquire land in Ontario that contains at least one and not more than six single family residences, or agricultural land, are required to provide this additional information.
If you are a first‑time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.
The Non-Resident Speculation Tax (NRST) is a 25 per cent tax on the purchase or acquisition of an interest in residential property located provincewide by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.
Local municipalities charge a tax on the residential or business property you own. If you have questions about municipal property tax, contact your local municipality. If your property is located in an unorganized territory (an area without municipal organization) of Ontario, property tax is collected through the provincial land tax program administered by the Provincial Land Tax Office in Thunder Bay.
If you buy property in the City of Toronto, you may also pay the City of Toronto's own municipal land transfer tax.
The harmonized sales tax (HST) applies to newly constructed homes or substantially renovated homes, but does not apply to resale homes. Buyers of new homes may receive a rebate of up to $24,000 of the provincial portion (8 per cent) of the HST . If you have any questions about the HST rebate please contact the Canada Revenue Agency at 1‑800‑959‑5525.
Ontario's land transfer tax is payable when the transfer is registered.
If the transfer is not registered within 30 days of closing, you must submit a Return on the Acquisition of a Beneficial Interest in Land form to the Ministry of Finance, along with the payment of tax within 30 days after the closing date.
Some person(s) do not pay land transfer tax on certain transfers of land. The exemptions include, but are not limited to:
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered on title.
The Land Transfer Tax Act was amended to set out a general anti‑avoidance rule. This rule applies to transactions that are completed after May 1, 2014. It also applies to transactions that occurred on or before May 1, 2014 if they are part of a series of transactions that is completed after May 1, 2014.
If you overpaid land transfer tax, including Non-Resident Speculation Tax, you can ask the Ministry of Finance for a refund. To request a refund, follow the steps below:
There is no time restriction where a refund is requested for land transfer tax paid on registration of a notice or caution where the transfer contemplated in the agreement referred to in the notice or caution did not take place.
First-time homebuyer refund requests must be made within 18 months after the date of the transfer.
All other refund requests must be made within 4 years after the date of payment of the tax.
For rebates of Non-Resident Speculation Tax, read the Non-Resident Speculation Tax. Time limits for rebates of Non-Resident Speculation Tax may be shorter than for refunds.
If this page does not completely address your situation, refer to the Act and related regulations, visit our website at ontario.ca/finance or contact us by:
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