Ontario buyers ask about "sales tax" but the real answers split into two questions: does HST apply to my purchase, and how much Land Transfer Tax (LTT) will I pay? For resale homes the HST answer is "no." For new builds it is "yes — but you may qualify for the New Housing Rebate." LTT is unavoidable for both, and Toronto buyers also pay the Municipal Land Transfer Tax (MLTT). Here is how it all works.
In this guide, we cross-reference How to Buy a House in Ontario, Closing Costs (Sellers), and Capital Gains Tax — click through whenever you want to go deeper on a related concept.
HST on Resale Homes — Generally Not Charged
Resale residential homes in Ontario are exempt from HST. You do not pay 13% on the purchase price of a previously-owned house or condo. HST does, however, apply to most services associated with the purchase — realtor commissions (paid by the seller in most cases), legal fees, home inspection fees, and moving costs.
HST on New Construction — Yes
New homes and substantially renovated homes are subject to 13% HST in Ontario. Most builders include HST in the listed price. Buyers who plan to live in the home as a primary residence can apply for the GST/HST New Housing Rebate, which can recover a portion of the HST paid (subject to price thresholds and CRA rules).
Ontario Land Transfer Tax (LTT)
Ontario charges a graduated LTT on every residential transfer:
| Price Bracket | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 – $250,000 | 1.0% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2.0% |
| Over $2,000,000 (1–2 unit residential) | 2.5% |
Toronto Municipal Land Transfer Tax (MLTT)
If the property is within the City of Toronto, you also pay the Municipal Land Transfer Tax — effectively doubling the LTT bill. Toronto's MLTT mirrors the provincial brackets and adds an additional luxury surcharge on homes over $3 million.
Non-Resident Speculation Tax (NRST)
Foreign buyers — anyone who is not a Canadian citizen or permanent resident, including foreign corporations and certain taxable trustees — pay the Ontario Non-Resident Speculation Tax (NRST) on top of LTT and MLTT. As of the most recent rate increase, NRST is 25% of the purchase price and applies province-wide to designated residential land of one to six single-family residences. The tax is collected by your real estate lawyer at closing and is in addition to (not in place of) HST, LTT, and MLTT.
Limited NRST rebates and exemptions exist for certain protected persons (refugees), nominees under the Ontario Immigrant Nominee Program at the time of purchase, and spouses of Canadian citizens or permanent residents who occupy the home as their principal residence. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (the foreign buyer ban) layers a separate restriction on top of NRST — confirm both with your real estate lawyer before signing an offer.
First-Time Buyer Rebates
First-time buyers can claim:
- Up to $4,000 rebate on Ontario LTT.
- Up to $4,475 rebate on Toronto MLTT (Toronto purchases only).
Worked Example — $1,000,000 Toronto Resale (Repeat Buyer)
| Item | Amount |
|---|---|
| Ontario LTT | $16,475 |
| Toronto MLTT | $16,475 |
| Total LTT | $32,950 |
| HST on purchase price | $0 (resale exempt) |
Frequently Asked Questions
Do I pay HST on a resale home in Ontario?+
No. Resale residential homes are HST-exempt. You will pay HST on services around the purchase — legal, inspection, moving, and realtor commission (typically paid by the seller).
Do I pay HST on a pre-construction condo?+
Yes — 13% HST applies to new construction in Ontario, usually included in the builder's price. If you'll live in it, apply for the GST/HST New Housing Rebate to recover part of the HST.
How much is Land Transfer Tax on a $1M Toronto home?+
Roughly $32,950 in total — half Ontario LTT and half Toronto MLTT — for a repeat (non-first-time) buyer in 2026.
Are first-time buyer rebates worth it?+
Absolutely. A first-time buyer in Toronto can save up to $8,475 ($4,000 Ontario + $4,475 Toronto). Your real estate lawyer files the rebate at closing.
Do foreign buyers pay extra tax in Ontario?+
Yes. The Ontario Non-Resident Speculation Tax (NRST) is 25% of the purchase price for foreign buyers across the entire province, on top of LTT and MLTT. The federal foreign buyer ban also restricts most non-Canadians from purchasing residential property — both rules need to be reviewed with your real estate lawyer before you sign.
Related Articles
Work With a Top Toronto Real Estate Agent
Plan your Toronto purchase with confidence. Aldo will help you model LTT, MLTT, first-time buyer rebates, and total closing costs before you offer.