How much will the land transfer tax cost you on your next purchase? In Ontario, the land transfer tax is calculated based on the price of the property. Different tax rates apply for various portions of the purchase price. For the first $55,000 a tax rate of 0.5% applies. For the portion between $55,000 and $250,000 a tax rate of 1.0% applies. The range between $250,000 and $400,000 is taxed at 1.5%, and the range between $400,000 and $2,000,000 is taxed at 2.0%. Finally, the balance of the purchase price that is over $2,000,000 is taxed at 2.5%. In addition to the provincial land transfer tax, any property that is located in the City of Toronto is subject to an additional municipal land transfer tax. The structure of Toronto's municipal land transfer tax is the same as Ontario's provincial land transfer tax, therefore and property purchased in Toronto is essentially subject to double the tax.
 
 A Land Transfer Tax Refund is available for eligible First Time Home Buyers. First-time buyers can receive a refund of up to $4,000 on the Ontario Land Transfer Tax and $4,475 on the Toronto Land Transfer Tax.
 
 To Qualify for the First Time Homebuyer Refund the following criteria must be met:
 
 - Must be at least 18 years old
 - Must occupy the home as your primary residence within 9 months from the date of transfer of the property
 - Must never have owned a home, or an interest in a home anywhere in the world, at any point in time
 - If you are married, your spouse must never have owned a home