Ontario Land Transfer Tax in 2026: What London Buyers Pay

If you are buying a home in London, Ontario, land transfer tax is one of the larger closing costs that people forget to budget for. It is paid on closing, and your lawyer normally collects it as part of the closing funds. Here is how the provincial tax works in 2026, in plain language.

How Ontario land transfer tax is calculated

Ontario charges land transfer tax in slices, the way income tax brackets work. Each rate applies only to the part of the price that falls inside that band. According to Ontario.ca, the residential rates are:

• 0.5% on the first $55,000
• 1.0% on the portion from $55,000 to $250,000
• 1.5% on the portion from $250,000 to $400,000
• 2.0% on the portion above $400,000
• 2.5% on the portion above $2,000,000, only for land containing one or two single-family residences

A worked example: $400,000

Ontario.ca uses a $400,000 purchase as its example, and the answer is $4,475. The pieces are:

• $55,000 x 0.5% = $275
• $195,000 x 1.0% = $1,950
• $150,000 x 1.5% = $2,250

Add those and you get $4,475. A home that sells for more than $400,000 pays the same $4,475 on the first $400,000, plus 2.0% on whatever sits above it. For a rough budget on a higher price, use the same slices and ask your lawyer for the exact figure before closing.

Is there a London land transfer tax on top?

Ontario.ca’s land transfer tax page mentions a municipal land transfer tax only in connection with the City of Toronto. We have not found a London or Ontario page that addresses London directly, so we will not make a promise on it. Your real estate lawyer will list every tax and adjustment on your statement of adjustments, and that is the number to rely on.

The first-time buyer refund

Ontario offers a refund of land transfer tax for eligible first-time buyers, up to a maximum of $4,000 for conveyances registered on or after January 1, 2017. Per the Ontario.ca refund page, you generally need to:

• be at least 18 years old
• be a Canadian citizen or permanent resident
• occupy the home as your principal residence within nine months of closing
• never have owned a home anywhere in the world, at any time

Because the tax on a $400,000 home is $4,475, a $4,000 refund covers most of it. On lower-priced purchases, the refund can cover the whole amount. Ask your lawyer how the refund will be claimed; the application window is 18 months from the registration date.

If you are also looking at federal programs, see our guide to first-time home buyer programs in Ontario. For planning the rest of your closing budget, our article on down payments and CMHC insurance covers the biggest piece.

The Non-Resident Speculation Tax

Ontario’s Non-Resident Speculation Tax (NRST) is 25% and has applied since October 25, 2022. It is aimed at certain purchases by foreign entities and by individuals who are not Canadian citizens or permanent residents. It is separate from land transfer tax and is paid in addition to it unless an exemption or refund applies. The rules have exemptions and refund conditions that depend on your status, so anyone who is not a citizen or permanent resident should speak with a lawyer before making an offer.

What to do next

• Add land transfer tax to your closing-cost estimate before you start viewing homes.
• If you might qualify for the refund, tell your lawyer early so it is handled at closing.
• Not sure of your price range? Browse our buyer resources and read about London neighbourhoods and communities.
• Thinking about selling first? Get a free home valuation so you know what equity you can bring to your next purchase.

This article is general information and not legal or tax advice. If you have questions about your own purchase, contact us and we will point you in the right direction.

Common questions we hear from buyers

Is it paid up front? Land transfer tax is due on closing, so it needs to be available as cash in addition to your down payment. Your lawyer will confirm the amount on your statement of adjustments.

Does it apply to every purchase? It applies to the transfer of land in Ontario, including resale homes and new builds. If your situation is unusual, ask your lawyer whether any exemptions apply.

Can I roll it into my mortgage? That is a question for your lender. Most buyers plan to pay it from savings, which is why we suggest adding it to your closing-cost estimate at the very start of your search.

What if I am buying with a partner? Ask your lawyer how the refund eligibility rules apply to each purchaser on title before you close.