Buying your first place in Cooksville can feel exciting and a little overwhelming. One cost that often surprises buyers is Ontario’s land transfer tax. You want a clear number, not guesswork, so you can plan your down payment and closing funds with confidence. In this guide, you will learn what the tax is, how much it may cost in Cooksville, how the first-time buyer refund works, and why Mississauga buyers do not pay Toronto’s extra municipal tax. Let’s dive in.
How land transfer tax works
Land transfer tax is a one-time tax you pay when a property’s title transfers to you. In Ontario, it is due at closing and your lawyer typically pays it from your closing funds. It is separate from mortgage default insurance, property taxes, and GST/HST on new homes.
You can review the provincial rules and forms on the Ontario government’s land transfer tax page. Policies can change, so confirm details there as you get closer to closing.
Ontario rates at a glance
Ontario’s land transfer tax is calculated on a tiered, or marginal, basis. Each portion of the price is taxed at the rate for that band. As last published by Ontario:
- 0.5% on the portion up to $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 from $400,000 to $2,000,000
- 2.5% on the portion above $2,000,000
You can verify the current schedule on Ontario’s land transfer tax page.
Why Cooksville buyers save vs. Toronto
Cooksville is in Mississauga, which does not charge a municipal land transfer tax. The City of Toronto does charge a separate municipal land transfer tax that mirrors the provincial brackets. That means a purchase inside Toronto’s city limits usually triggers two taxes, while a purchase in Mississauga triggers only the provincial one.
For background, see the City of Toronto’s municipal land transfer tax page. If you are comparing homes near the municipal border, this difference can add up to thousands of dollars and should be part of your affordability plan.
First-time buyer refund in Ontario
Ontario offers a first-time homebuyer refund that reduces the provincial land transfer tax by up to a maximum amount. The commonly referenced maximum is $4,000. This refund applies to the provincial tax only and does not apply to any municipal tax in Toronto.
Your lawyer usually prepares and files the refund application at closing. Review eligibility and documentation on Ontario’s page for refunds for first-time homebuyers.
Cooksville examples you can use
Below are illustrative examples to help you budget. They use the provincial rates above and assume you qualify for the maximum first-time buyer refund of $4,000. Mississauga has no municipal land transfer tax.
Scenario A — Condo at $450,000
- Provincial LTT:
- 0.5% on first $55,000 = $275
- 1.0% on next $195,000 = $1,950
- 1.5% on next $150,000 = $2,250
- 2.0% on remaining $50,000 = $1,000
- Total provincial LTT = $5,475
- First-time refund = $4,000
- Net LTT payable ≈ $1,475
Scenario B — Townhouse or semi at $800,000
- Provincial LTT:
- Up to $400,000 bands = $4,475
- 2.0% on $400,000 = $8,000
- Total provincial LTT = $12,475
- First-time refund = $4,000
- Net LTT payable ≈ $8,475
Scenario C — Detached home at $1,200,000
- Provincial LTT:
- Up to $400,000 bands = $4,475
- 2.0% on $800,000 = $16,000
- Total provincial LTT = $20,475
- First-time refund = $4,000
- Net LTT payable ≈ $16,475
If these same purchases were inside Toronto, you would typically add a similar municipal LTT amount on top of the provincial figure. First-time refunds apply to the provincial portion only. Check Toronto’s page for any municipal refund rules.
Other closing costs to plan for
Land transfer tax is one of several closing costs. Plan for these common items in Mississauga:
- Legal fees and disbursements: about $1,000 to $2,000, plus out-of-pocket searches and registrations.
- Title insurance: typically $200 to $500.
- Home inspection: often $300 to $700 for resale homes.
- Adjustments at closing: prorated property taxes and utilities based on your closing date.
- GST/HST: most resale homes are HST-exempt. New homes or substantially renovated homes can have HST and potential rebates.
- Mortgage-related costs: lender appraisal ($200 to $500), prepaid interest, and lender fees vary. If your down payment is under 20 percent, mortgage default insurance premiums are added to your mortgage, not usually paid in cash at closing.
- Moving, utility hookups, home insurance, and for condos, a status certificate fee that often ranges from about $100 to $300.
For context on federal programs that may support first-time buyers, review the CRA’s Home Buyers’ Plan and CMHC’s First-Time Home Buyer Incentive.
Quick buyer checklist
- Get mortgage pre-approval so you know your price range and whether you will need mortgage default insurance.
- Ask your lawyer early for a written estimate of closing funds, including land transfer tax and legal fees.
- Confirm your eligibility for the first-time buyer refund and provide documents before closing.
- Verify the property address is within Mississauga, not Toronto, so you avoid a municipal LTT.
- If you are a non-resident or have owned property outside Ontario or Canada, confirm any special rules or surcharges on Ontario’s pages.
- Clarify whether the home is new or resale since HST treatment and rebates differ.
Get local guidance for Cooksville
A smooth first purchase comes down to clear planning and local know-how. You will get both with the Larose Team. Our South Mississauga focus, concierge support, and 25-plus years of experience help you budget accurately, negotiate with confidence, and close without surprises. If you are weighing Cooksville against nearby Toronto neighborhoods, we will map the land transfer tax impact so you can make the right call for your budget.
Ready to run your numbers and start your search in Cooksville? Reach out to the Larose Team for a friendly, no-pressure consult.
FAQs
What is land transfer tax in Ontario?
- It is a one-time provincial tax paid by the buyer at closing when title transfers, calculated on the purchase price using tiered rates listed on Ontario’s land transfer tax page.
Do Mississauga buyers pay Toronto’s municipal LTT?
- No. Mississauga does not charge a municipal land transfer tax. Toronto does, so purchases inside Toronto are typically subject to both provincial and municipal LTT.
How much is the first-time buyer refund in Ontario?
- The commonly cited maximum is $4,000, which reduces the provincial land transfer tax. Review eligibility and how to claim on Ontario’s refunds for first-time homebuyers page.
Does the refund apply to Toronto’s municipal LTT?
- No. Ontario’s first-time buyer refund applies only to the provincial LTT. Toronto’s municipal LTT has separate rules managed by the City of Toronto.
When is land transfer tax paid in the process?
- Your lawyer includes the tax in the certified funds needed for closing and remits it as part of transferring title to your name.
