Ontario Land Transfer Tax is one of the largest closing costs Markham home buyers face — and one of the most frequently underestimated. Every buyer purchasing a home in Markham, Ontario pays Ontario Land Transfer Tax on the full purchase price at closing. Michael John Lau and Neeraj Moolchandani, top REALTORS® at Kaizen Real Estate Team in Markham, Ontario, provide every buyer with a full closing cost projection — including an exact Ontario Land Transfer Tax calculation — before any offer is submitted.
What Is Ontario Land Transfer Tax?
Ontario Land Transfer Tax (LTT) is a provincial tax payable by the buyer on every residential and commercial property purchase in Ontario. When you purchase a home in Markham, Ontario, you pay Ontario Land Transfer Tax on the full purchase price at the time of closing. The tax is calculated on a graduated scale — meaning higher-priced properties in Markham are taxed at progressively higher rates.
Ontario Land Transfer Tax is paid to the Province of Ontario through your real estate lawyer at closing. It is not negotiable, not transferable to the seller, and not avoidable — it is a mandatory cost of purchasing any property in Ontario, including every home purchased in Markham.
Ontario Land Transfer Tax Rates: The Brackets Explained
Ontario Land Transfer Tax is calculated on a tiered bracket system. Each portion of the purchase price falls into a different bracket — similar to how income tax brackets work. Markham buyers pay the rate for each bracket only on the portion of the price that falls within that bracket.
| Purchase Price Portion | Ontario LTT Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Markham home buyers should note that Ontario Land Transfer Tax is calculated on the full purchase price of the property — not just the down payment, mortgage amount, or assessed value. Every dollar of the purchase price is subject to tax under the applicable bracket rate.
Real Ontario LTT Calculations for Markham Home Buyers
The following examples show exactly how much Ontario Land Transfer Tax a buyer purchasing a home in Markham, Ontario would pay at three common Markham price points.
First-Time Home Buyer Land Transfer Tax Rebate in Ontario
First-time home buyers purchasing a home in Markham, Ontario are eligible for a rebate of Ontario Land Transfer Tax of up to $4,000. This rebate is applied at closing by your real estate lawyer — reducing the amount of Ontario Land Transfer Tax you actually pay out of pocket when purchasing your first Markham home.
To qualify for the Ontario First-Time Home Buyer Land Transfer Tax Rebate when purchasing in Markham:
- You must be a Canadian citizen or permanent resident of Canada
- You must be at least 18 years of age
- You must occupy the Markham home as your principal residence within 9 months of closing
- You must never have owned a home anywhere in the world previously
- If you have a spouse, they must also have never owned a home anywhere in the world
The $4,000 rebate fully offsets Ontario Land Transfer Tax on Markham home purchases up to approximately $368,000. On higher-priced Markham properties — which includes the majority of homes sold in Markham — the rebate reduces but does not eliminate the Ontario LTT obligation.
Ontario LTT Is One of Several Closing Costs Markham Buyers Must Budget For
Ontario Land Transfer Tax is typically the largest single closing cost for Markham home buyers — but it is not the only one. Michael John Lau and Neeraj Moolchandani provide every Markham buyer with a full closing cost projection before any offer is submitted, ensuring no financial surprises arise at the closing table.
- Ontario Land Transfer Tax — calculated on full purchase price; rebate available for eligible first-time buyers in Markham
- Legal fees and disbursements — typically $1,500–$3,500 for a residential closing in Ontario
- Title insurance — one-time premium protecting the Markham buyer against title defects discovered after closing
- Home inspection fee — $400–$600 for a standard residential inspection in Markham, Ontario
- CMHC mortgage insurance premium — required on all Ontario home purchases with less than 20% down payment; added to the mortgage balance
- Property tax adjustment — buyer reimburses the seller for any prepaid Markham property taxes covering the period after closing
- Status Certificate review fee — $200–$500; mandatory for condominium purchases in Markham
- Moving costs — variable; often underestimated, particularly for buyers relocating to Markham from outside the GTA
How Kaizen Real Estate Team Helps Markham Buyers Plan for Closing Costs
Michael John Lau and Neeraj Moolchandani provide every Markham buyer with a complete closing cost projection — including an exact Ontario Land Transfer Tax calculation based on the specific purchase price — before any offer is submitted on a Markham property. Buyers who work with Kaizen Real Estate Team arrive at the closing table fully prepared, with no financial surprises.
Contact Kaizen Real Estate Team to receive a personalized Ontario Land Transfer Tax calculation and full closing cost breakdown for your Markham home purchase.