Buying in Playfair Park, Lynda Park, or Guildwood Estates? One line on your closing statement can shift your budget fast: land transfer tax. You want a clear, Ottawa-specific number so you can plan with confidence and avoid surprises. In this guide, you’ll learn exactly what you pay in Ottawa, how the tax is calculated, which refunds may reduce your total, and what other closing costs to expect. Let’s dive in.
Which land transfer taxes apply in Ottawa
If you are buying in Ottawa, you pay the Ontario provincial Land Transfer Tax. Ottawa does not charge a separate municipal land transfer tax. In Ontario, only Toronto adds a municipal LTT on top of the provincial tax.
Your lawyer typically calculates the exact amount and remits it to the province at closing. For policy details and any updates, review the Government of Ontario’s overview of land transfer tax.
How Ontario’s LTT is calculated
Ontario uses a tiered formula. You pay a different rate on each slice of the purchase price:
- 0.50% on the first $55,000
- 1.00% on the portion from $55,000 to $250,000
- 1.50% on the portion from $250,000 to $400,000
- 2.00% on the portion from $400,000 to $2,000,000
- 2.50% on the portion above $2,000,000
Your LTT equals the sum of the tax on each tier. Ask your lawyer for a precise figure for your agreement price and circumstances.
Quick examples for common price points
$400,000 purchase price
- 0.5% of $55,000 = $275
- 1.0% of $195,000 = $1,950
- 1.5% of $150,000 = $2,250
- Total LTT = $4,475
$600,000 purchase price
- Up to $400,000 = $4,475
- 2.0% of $200,000 = $4,000
- Total LTT = $8,475
$1,000,000 purchase price
- Up to $400,000 = $4,475
- 2.0% of $600,000 = $12,000
- Total LTT = $16,475
$2,500,000 purchase price
- Up to $400,000 = $4,475
- 2.0% of $1,600,000 = $32,000
- 2.5% of $500,000 = $12,500
- Total LTT = $48,975
First-time buyer refund and other exemptions
Ontario offers a refund for qualifying first-time homebuyers. The maximum provincial refund is $4,000. That means if your calculated LTT is $4,475 on a $400,000 home, you would pay $475 after the refund if you qualify. Review eligibility rules and claim steps on the province’s page for first-time homebuyer LTT refunds.
Other exemptions can apply in specific situations, such as certain transfers between spouses or following a death. Your lawyer can confirm whether any exemption fits your situation. If you are a non-resident buyer, note that historic non-resident taxes have focused on other Ontario regions. Ottawa purchases are generally outside those rules, but you should verify current requirements with your lawyer before you commit.
HST on new homes vs resale
HST at 13% generally does not apply to resale homes in Ontario. New construction and substantially renovated homes usually include HST, and you may qualify for a federal GST/HST New Housing Rebate. The Canada Revenue Agency explains eligibility and how to apply for the GST/HST new housing rebate. Always confirm with the builder and your lawyer how HST is handled in your agreement.
Other closing costs to plan for
In addition to LTT, budget for these common items in Ottawa. Actual amounts depend on property type, price, and your financing.
- Mortgage default insurance (if down payment is under 20%). Premiums vary by insurer and down payment. Learn the basics through CMHC mortgage loan insurance.
- Legal fees and disbursements. Many buyers see legal fees in the range of about $800 to $2,000 plus disbursements.
- Title insurance. One-time premium often roughly $150 to $400, depending on insurer and price.
- Land registration fees. Modest statutory fees to register the deed and any mortgage.
- Home inspection, appraisal, survey. Typical inspections can run about $300 to $700. Lender appraisals can be $300 to $600. Surveys vary and can exceed $1,000 depending on scope.
- Property tax and utility adjustments. You may reimburse the seller for prepaid amounts as of your closing date. See the City’s overview of property taxes for context.
- Condo status certificate fee. Usually a few hundred dollars for condo purchases.
A practical rule of thumb is to budget roughly 1.5% to 4% of the purchase price for closing costs, on top of your down payment. Buyers of resale homes with straightforward financing tend to be toward the lower end. New builds, insured mortgages, or significant adjustments can push you higher.
Your action plan in Playfair Park, Lynda Park, and Guildwood Estates
- Get your precise LTT number early. Ask your lawyer or lender to calculate it for your target price and to confirm any refund eligibility.
- Clarify if the home is new or resale. HST usually applies to new construction and not to resales, and rebates differ from LTT rules.
- Ask your lender about mortgage default insurance. If your down payment is under 20%, request an estimate and confirm whether the premium will be added to the mortgage or paid at closing.
- Line up your closing budget. Include legal fees, title insurance, land registration fees, inspection, appraisal, and any condo or survey costs.
- Confirm who will file rebate forms. Your lawyer typically remits the LTT and helps submit first-time buyer refund documents.
- If you are a non-resident or buying through a company, consult your lawyer early to review any extra disclosures or taxes.
Get local guidance you can trust
You deserve a clear, stress-free path from accepted offer to keys in hand. If you want a tailored closing-cost plan for a specific home in Playfair Park, Lynda Park, or Guildwood Estates, connect with the The Zak Green Team. We will map your LTT, verify any refunds, and coordinate the details so you can move forward with confidence.
FAQs
What land transfer taxes do Ottawa buyers pay, and is there a city tax?
- You pay the Ontario provincial LTT, and there is no municipal LTT in Ottawa.
How much is land transfer tax on a $600,000 Ottawa home?
- The LTT is $8,475 based on Ontario’s tiered rates.
Do first-time buyers in Ottawa avoid land transfer tax entirely?
- You may get a provincial refund up to $4,000, which can reduce or eliminate your LTT depending on the purchase price and eligibility.
Does HST apply to resale homes in Ottawa?
- HST generally does not apply to resale homes; new construction typically includes HST with potential federal rebates.
Who calculates and pays land transfer tax at closing in Ontario?
- Your lawyer usually calculates the LTT, collects it from your buyer funds, and remits it to the province at closing.
