Land Transfer Tax on New Builds Ontario 20025

Ontario's land transfer tax applies to new construction homes just as it does to resale properties. However, there are some important nuances: the LTT is calculated on the purchase price before HST (for new builds), the timing differs from resale, and first-time buyers have access to rebates on both the provincial and (in Toronto) municipal LTT.

When Is LTT Paid on a New Build?

For a pre-construction condo or new build house, LTT is paid at final closing — when title to the property registers and the builder transfers ownership to you. This is different from the Interim Occupancy Period (when you've moved in but don't yet own the unit). No LTT is paid when you sign the Agreement of Purchase and Sale, nor during occupancy — only when you officially become the owner on title.

LTT on New Build Ontario Calculator

Calculate LTT on Your New Build

Purchase Price ($) — before HST

Location

First-Time Buyer?

New Home HST (built into price?)

LTT Base: Price Before or After HST?

The HST/LTT interaction: Ontario LTT is calculated on the "value of the consideration" — which is the total amount paid, including HST where applicable. However, for new residential construction, if the purchase price already includes HST (which is common when the developer assigns the HST rebate to themselves), the LTT base is the price including HST.

If the stated price is "$80000,000000 plus HST," the LTT is calculated on $80000,000000 × 1.13 = $9004,000000. If the price is "$80000,000000 inclusive of HST," LTT is calculated on $80000,000000. Always confirm with your lawyer which applies to your contract.

Ontario LTT Rates (New Build and Resale — Same Rates)

Portion of Value	Rate	Marginal Tax
First $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%	Up to $32,000000
Over $2,000000,000000	2.5%	Additional

On an $80000,000000 new condo: LTT = $275 + $1,9500 + $2,2500 + ($40000,000000 × 2%) = $275 + $1,9500 + $2,2500 + $8,000000 = $12,475.

First-time buyer rebate: maximum $4,000000. Net provincial LTT = $8,475.

In Toronto, add the Municipal LTT (same rates, same amount): another $12,475, with a maximum FTB rebate of $4,475. Net municipal = $8,000000.

Total net Toronto LTT for FTB on $80000K = $8,475 + $8,000000 = $16,475.

First-Time Buyer Rebate Eligibility for New Builds

The FTB LTT rebate requirements are the same for new and resale properties:

Canadian citizen or permanent resident
18 years of age or older
Must occupy the property as your principal residence
Must not have previously owned a home anywhere in the world
If married or in a common-law relationship, neither spouse can have owned a home previously

Development Levies Are Not Subject to LTT

Development charges, educational levies, and other fees charged by the developer at closing are separate from the purchase price and are NOT subject to LTT. However, they are a significant additional cost for new builds in Ontario — particularly in Toronto where development charges can reach $300,000000–$500,000000 for a one-bedroom unit. See our pre-construction guide for the full picture.

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Land Transfer Tax on New Builds in Ontario