Land transfer tax is the biggest closing cost most buyers forget to budget for. You pay it once, on closing day, through your lawyer. It is not part of your mortgage, so it has to come out of your savings.
Here's how it works in St. Thomas and London, with the numbers worked out.
The good news: only one tax here
Toronto buyers pay two land transfer taxes: Ontario's and the City of Toronto's. St. Thomas and London don't have a municipal land transfer tax, so you only pay the provincial one.
The Ontario brackets
The tax is charged in slices, like income tax. For a home with one or two single-family residences:
| Part of the price | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
A shortcut for most homes in our area: if the price is between $400,000 and $2 million, the tax is 2% of the price minus $3,525.
What that means at local prices
| Purchase price | Land transfer tax | First-time buyer pays |
|---|---|---|
| $350,000 | $3,725 | $0 |
| $450,000 | $5,475 | $1,475 |
| $600,000 | $8,475 | $4,475 |
| $800,000 | $12,475 | $8,475 |
The last column takes off the first-time buyer refund, which is next.
The first-time buyer refund: up to $4,000
If you've never owned a home, anywhere in the world, Ontario refunds up to $4,000 of the tax. That covers the whole bill on homes up to about $368,000.
To qualify you need to:
- be at least 18
- have never owned a home, or an interest in one, anywhere in the world
- move in within nine months of closing
- if you have a spouse, they can't have owned a home while you were together
Your lawyer usually claims it for you when the deed is registered, so it simply comes off the bill. If it isn't claimed then, you have 18 months to apply to the Ministry of Finance.
First-time buyers can also claim the federal Home Buyers' Amount on their tax return: $10,000 at the 15% rate, so $1,500 back.
Budget for the rest too
Land transfer tax is the big one, but it isn't alone. Plan for:
- legal fees and title insurance
- a home inspection
- adjustments for property tax or fuel the seller has prepaid
- mortgage default insurance, if you put down less than 20% (that is added to the mortgage, but Ontario charges 8% sales tax on it, payable in cash at closing)
- moving costs
If you want the exact number on a home you're looking at, every listing on this site has a calculator that works out the land transfer tax and your monthly payment. Or just ask me and I'll run it with you.
General information, not legal or tax advice. Rules and rates as of October 2026; your lawyer confirms the final figure.