Land Transfer Tax (LTT): The closing cost most buyers don’t budget for

When you buy a home in Burlington, there is a cost called Land Transfer Tax.  This is a one-time tax paid to the province when you buy a home. You pay it on closing day.

For many buyers, this is the biggest cost after the down payment.

Good news for Burlington buyers

If you buy a home in Burlington, you only pay Ontario’s land transfer tax.  Buyers in Toronto have to pay two land transfer taxes, which costs a lot more.  This means Burlington buyers usually pay much less.

How land transfer tax works

Land transfer tax is not one flat rate.  Ontario uses steps.

Each part of the home price is taxed at a different rate. As the price goes up, the tax goes up too.

Example: $900,000 home in Burlington

If you buy a home for $900,000, your land transfer tax is about: $14,475

This is because:

• The first part of the price is taxed at a low rate
• Higher parts of the price are taxed at higher rates

First-time homebuyers may pay less

If this is your first home, you may get a rebate of up to $4,000.  This means you could pay much less land transfer tax.  Your lawyer usually applies this rebate for you.

When do you pay it?

📌 You pay land transfer tax on closing day
📌 Your lawyer collects it
📌 It cannot be added to your mortgage

This means you must have the money ready ahead of time.

Plan ahead

Land transfer tax is a big cost.  Knowing about it early helps you avoid surprises.