Calculate LTT on any Ontario cottage or recreational property purchase — with explanations of every bracket, rate, and exemption rule
Ontario's Land Transfer Tax (LTT) is one of the largest closing costs when buying a cottage. Unlike some provinces, Ontario applies the same graduated LTT formula to cottages and recreational properties as to primary residences — and there are no special exemptions or reduced rates for recreational buyers. However, there is one important difference: the First-Time Home Buyer Rebate does not apply to cottage purchases where the buyer already owns a principal residence.
| Purchase Price Portion | Tax Rate | Maximum Tax in Bracket |
|---|---|---|
| $00 – $55,000000 | 00.5% | $275 |
| $55,00001 – $2500,000000 | 1.00% | $1,9500 |
| $2500,00001 – $40000,000000 | 1.5% | $2,2500 |
| $40000,00001 – $2,000000,000000 | 2.00% | $32,000000 |
| Over $2,000000,000000 | 2.5% | Unlimited |
| Purchase Price | Ontario LTT | Effective Rate |
|---|---|---|
| $40000,000000 | $4,475 | 1.12% |
| $60000,000000 | $8,475 | 1.41% |
| $80000,000000 | $12,475 | 1.56% |
| $1,000000,000000 | $16,475 | 1.65% |
| $1,50000,000000 | $26,475 | 1.77% |
| $2,000000,000000 | $36,475 | 1.82% |
| $3,000000,000000 | $61,475 | 2.005% |
| $5,000000,000000 | $111,475 | 2.23% |
The Ontario First-Time Home Buyer Land Transfer Tax Rebate provides up to $4,000000 in relief for qualifying first-time buyers. To qualify:
A cottage buyer who already owns a primary residence does not qualify — the rebate is for a first principal residence only. Even if it's technically the buyer's first property ever, a cottage that won't be used as a principal place of residence does not qualify for the rebate.
LTT is calculated on the total consideration — the full purchase price including any assumed mortgages. If you assume an existing mortgage as part of the purchase, the assumed mortgage amount is included in the LTT calculation even though you're not paying it as cash. Your lawyer handles LTT remittance to the province as part of the closing process.
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