There is no HST on land transfer tax in Ontario. The province’s land transfer tax is a government charge triggered when a transfer document is registered, not a payment for goods or services, so the 13% HST does not apply to it. HST also is not included in the value used to calculate what you owe in land transfer tax.1Government of Ontario. Determining the Value of the Consideration for Transfers of New Homes What can confuse buyers is that HST still shows up elsewhere on the same closing statement, so “no HST on land transfer tax” is not the same thing as “no HST in my deal.”
Why the Two Taxes Do Not Overlap
Ontario’s land transfer tax is a provincial levy that becomes payable when a deed or other transfer document is registered. HST is a 13% consumption tax, split between a 5% federal portion and an 8% provincial portion, that applies to taxable supplies of goods and services. A land transfer tax payment is neither a good nor a service; it is a tax paid to the government, so it sits outside the scope of HST entirely.
The math runs cleanly in both directions. The HST you pay on a new home is stripped out before your land transfer tax is calculated, so it does not inflate the LTT bill. And the land transfer tax itself does not get a 13% surcharge tacked on. On a lawyer’s statement of adjustments, the two appear as fully independent line items.
One narrow exception is worth naming so it does not throw you: the City of Toronto charges an administration fee for processing its municipal land transfer tax, and that fee attracts HST. The fee is $102.56 plus HST, so the HST component is small, but it is the one place where the two taxes appear on the same receipt.2City of Toronto. Municipal Land Transfer Tax MLTT Rates and Fees It is HST on the administration fee, not on the land transfer tax.
Where HST Does Show Up in Your Closing
The land transfer tax being HST-free does not mean the transaction is. What matters is what you are buying and from whom.
Resale Homes
Most sales of previously occupied homes are exempt. Schedule V, Part I of the federal Excise Tax Act exempts the sale of a residential property by someone who is not the builder of that property, which covers almost every resale between individual homeowners.3Canada Revenue Agency. Residential Real Property-Sales If you are buying a used house from another individual, no HST applies to the purchase price.
New Construction and Substantial Renovations
Newly built and substantially renovated homes are taxable supplies. The full 13% HST applies to the price. Builders usually fold HST into the advertised price of a new home, but the obligation is real, and a pre-construction contract that lists the price “plus HST” can create a serious funding gap at closing if you have not budgeted for it.
Assignment Sales of Pre-Construction Housing
Since May 7, 2022, all assignments of purchase and sale agreements for newly constructed or substantially renovated housing are taxable for HST purposes.4Canada Revenue Agency. Assignment of a Purchase and Sale Agreement for a New House or Condominium Unit If you bought a pre-construction condo and are assigning the contract before the building closes, HST applies to the assignment. The CRA treats anyone who acquired the interest primarily to resell it as a “builder,” so the sale is taxable whether the assignor is a corporation or an individual.
Commercial Property and Vacant Land
Commercial real estate is generally subject to HST. Vacant land can go either way. Land kept for personal use by an individual is usually exempt; land sold in the course of a business, or used primarily in a business, is taxable.5Canada Revenue Agency. Sales of Vacant Land by Individuals
Legal Fees
Your real estate lawyer’s professional fees are subject to HST. This has nothing to do with the land transfer tax itself, but it is a closing cost that catches people out. If your lawyer quotes a flat fee of $1,500, expect to pay $1,695 after HST.
How the Land Transfer Tax Itself Is Calculated
Since you are probably budgeting the whole closing, it helps to see what the land transfer tax actually is. Ontario uses a graduated scale based on the value of the consideration, which is essentially the purchase price. The provincial rates in effect since January 1, 2017 are:6Government of Ontario. Calculating Land Transfer Tax
- Up to $55,000: 0.5%
- $55,001 to $250,000: 1.0%
- $250,001 to $400,000: 1.5%
- $400,001 to $2,000,000: 2.0%
- Over $2,000,000: 2.5% (for properties with one or two single-family residences)
Each rate applies only to the portion of the price within its bracket, so crossing $400,000 does not suddenly retax the whole amount. On a $900,000 home, the provincial land transfer tax works out to $12,475. Your lawyer calculates the exact figure and remits it when the deed is registered; if the payment is not submitted, registration is refused and legal ownership cannot transfer.6Government of Ontario. Calculating Land Transfer Tax
Buyers within the City of Toronto pay a second land transfer tax on top of the provincial one. For properties containing one or two single-family residences, the Toronto Municipal Land Transfer Tax rates as of April 1, 2026 begin at 0.5% up to $55,000 and rise through the same brackets as the province up to $2 million. Above that, the municipal rates climb sharply: 2.5% from $2,000,001 to $3,000,000, then 4.40%, 5.45%, 6.50%, 7.55%, and 8.60% at the top for property over $20 million.2City of Toronto. Municipal Land Transfer Tax MLTT Rates and Fees Neither the provincial nor the Toronto land transfer tax is subject to HST.
Rebates That Reduce What You Actually Pay
First-Time Homebuyer Land Transfer Tax Rebates
Ontario offers a land transfer tax refund of up to $4,000 for first-time buyers. You must be at least 18, you and your spouse must not have ever owned a home or an interest in a home anywhere in the world, and you must occupy the property as your principal residence.7Government of Ontario. Land Transfer Tax Refunds for First-Time Homebuyers The $4,000 cap covers the full provincial LTT on homes up to $368,333.
Toronto provides a separate municipal rebate of up to $4,475 for first-time buyers meeting similar criteria.8City of Toronto. Municipal Land Transfer Tax MLTT Rebate Opportunities The two stack, so a first-time buyer in Toronto can receive up to $8,475 combined.
HST Rebates on New Homes
If your purchase is a new build and HST applies, two rebate programs can bring the cost down. These are entirely separate from the LTT rebates.
Ontario offers a New Housing Rebate of up to $24,000 on the provincial portion of the HST, with no price cap. As long as you or a close relative occupy the home as a primary residence and you meet the other conditions, the provincial rebate is available regardless of the fair market value.9Canada Revenue Agency. GST/HST New Housing Rebate
The federal portion of the rebate covers some of the 5% GST but phases out with price. Homes under $350,000 get the full federal rebate, homes between $350,000 and $450,000 get a reduced amount, and homes at or above $450,000 receive nothing on the federal side.9Canada Revenue Agency. GST/HST New Housing Rebate Given Ontario prices, many buyers qualify provincially but not federally.
A newer federal program announced in 2025 adds a First-Time Home Buyer GST Rebate of up to $50,000 on new homes. Combined with the existing rebate, it can cover 100% of the GST on new homes valued up to $1 million, phasing out between $1 million and $1.5 million. To qualify, you must be at least 18, a Canadian citizen or permanent resident, and you must not have owned a home (or had a spouse who owned one) in the current or preceding four calendar years.10Department of Finance Canada. GST Relief for First-Time Home Buyers on New Homes Valued Up to 1.5 Million