Worked example · Verified 2026-09-12

What land transfer tax costs on a $450,000 Ontario resale

Four hundred fifty thousand is a common first-home band in smaller Ontario cities. The legal story that matters here is the provincial rebate, not a municipal surcharge. Buyers in this slice are usually scraping cash for the down payment, legal fees, and this tax from the same pile — which is why seeing the rebate in the table changes whether the deal still closes. This page does not claim Toronto municipal tax. It does not claim a British Columbia property-transfer schedule. It is an Ontario resale with first-time status on. The companion closing-costs guide covers the rest of the cheque; this page owns the levy.

This Ontario first-home example uses the provincial bracket schedule last verified 2026-09-12. It does not float with the live rate sheet. Live rates hub.

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Computed result

Purchase price$450,000
JurisdictionOntario
Provincial tax$5,475
Municipal tax$0
Tax before rebates$5,475
First-time buyer rebate$4,000
Land transfer tax payable$1,475
First-time buyerYes

Ontario brackets, then the first-time rebate

Ontario applies a provincial percentage schedule in slices of the purchase price, then subtracts the first-time buyer rebate from that provincial subtotal. Toronto municipal land transfer tax is a separate overlay and is off on this page because the property sits outside the city. The rebate is a legal claim on the return the solicitor files; the engine only shows the cash if the toggle is on. Land transfer tax is cash at closing. It is never capitalized into the mortgage principal.

  1. 01 · Provincial brackets

    $0 - $55,000 at 0.5% → $275.00; $55,000 - $250,000 at 1.0% → $1,950.00; $250,000 - $400,000 at 1.5% → $2,250.00; $400,000 - $2,000,000 at 2.0% → $1,000.00. Provincial subtotal $5,475.

  2. 02 · Municipal layer

    No municipal land transfer tax applies on this example (outside Toronto).

  3. 03 · First-time buyer relief

    Provincial rebate $4,000; municipal rebate $0. Combined relief $4,000.

  4. 04 · Cash at closing

    Total land transfer tax payable $1,475. This is cash; it is not added to the mortgage principal.

What this band means

At $450,000 in Ontario, provincial tax before relief is $5,475. Municipal tax is $0 because the file is outside Toronto. Combined rebate $4,000 leaves $1,475 payable. That payable figure is the number to take to the solicitor, not a monthly add-on. If first-time status fails underwriting or at the registry, the sensitivity row without the rebate is the live cheque. Spending the down-payment stash on this tax lowers the price you can support on a re-run of the affordability engine; the two tools do not share a ledger. Read the first-time rebate guide for eligibility tests. This example only shows the arithmetic when the toggle is yes.

Picture a Brantford bungalow, a Kingston starter, or a Thunder Bay side-split — smaller-city Ontario, not the Greater Toronto Area. Solicitors there file a provincial return through Teranet; they never open a City of Toronto municipal column. MPAC assessment chatter at this band is about the next tax bill, not a stacked levy. The first-time rebate is the plot. Compare that with an East York closing at a higher price on this hub, where a second schedule appears. This page is the rest-of-Ontario first-home case only.

Sensitivity

A higher purchase price walks into a steeper provincial slice and can exhaust the rebate. Turning the rebate off is the local threshold that actually moves cash at this band. Moving the same price inside Toronto would add a municipal column the rest of Ontario never sees — that is a different page on this hub, not a toggle you should imagine on this closing.

ChangeResultVersus this page
Price $562,500$3,725+$2,250 tax
Without first-time buyer rebate$5,475+$4,000 tax
Same price inside Toronto$2,475+$1,000 tax

Questions that only this band answers

Does every Ontario city add municipal land transfer tax on a $450,000 purchase?▾
No. Toronto is the Ontario city with a municipal land transfer tax stacked on the provincial schedule. This $450,000 example is provincial only. If the property is inside Toronto, use the Toronto examples on this hub.
Is the first-time buyer rebate on this $450,000 Ontario file automatic?▾
The rebate is claimed on the provincial return filed at closing. Eligibility is a legal question for the solicitor. This page applies the rebate so you can see the cash effect ($4,000 off $5,475); it does not certify that a given buyer qualifies.
Does land transfer tax on this $450,000 Ontario house change the mortgage payment?▾
No. $1,475 is a closing cost paid once. It is not added to the monthly or bi-weekly payment. It can reduce cash left for the down payment if you treat all closing cash as one pool.

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Last verified: 2026-09-12