Buying in Aurora should feel exciting, not confusing. Yet one cost surprises many buyers at closing: Ontario’s land transfer tax. If you understand how it works, you can plan with confidence and avoid last‑minute stress. In this guide, you will learn how the tax is calculated in Aurora, what you might owe at common price points, who qualifies for first‑time buyer refunds, and how to budget like a pro. Let’s dive in.
Land transfer tax in Aurora
Land transfer tax is a provincial tax that applies when you buy real estate in Ontario. Because Aurora is in York Region, you pay the provincial tax only. There is no separate municipal land transfer tax in Aurora. Toronto is the notable exception where buyers pay both provincial and municipal taxes.
You normally pay land transfer tax at closing. Your lawyer calculates the amount, collects the funds, registers your deed, and remits the tax on your behalf.
Rates and rules confirmed as of June 2024. Always check for updates before you make a final decision.
How Ontario calculates the tax
Ontario uses a tiered, marginal rate system. Portions of your purchase price are taxed at different rates:
- 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
- An additional 0.5% may apply to the portion above $2,000,000 on certain residential properties. Confirm current provincial guidance for precise application.
Who pays and when:
- The purchaser pays the tax. Your lawyer typically handles payment from your closing funds.
- Payment is due at or before registration of the transfer. Registration will not proceed unless the tax is paid.
What you might pay in Aurora
Below are simple examples using the provincial rate schedule. Amounts are rounded.
Example: $600,000 purchase
- 0.5% of $55,000 = $275
- 1.0% of $195,000 = $1,950
- 1.5% of $150,000 = $2,250
- 2.0% of $200,000 = $4,000
- Total estimated LTT: $8,475
Example: $1,000,000 purchase
- Tiers up to $400,000 total $4,475
- 2.0% of $600,000 = $12,000
- Total estimated LTT: $16,475
Example: $2,000,000 purchase
- Tiers up to $400,000 total $4,475
- 2.0% of $1,600,000 = $32,000
- Total estimated LTT: $36,475
For purchases above $2,000,000, an additional 0.5% may apply to the portion over $2,000,000 for certain residential properties. Confirm the latest rules with your lawyer before you finalize your budget.
First‑time buyer refund basics
Ontario offers a refund that can reduce or eliminate land transfer tax for eligible first‑time home buyers. The maximum refund is commonly quoted as $4,000. This can meaningfully lower your closing costs on lower‑priced homes.
Typical eligibility items to confirm with your lawyer:
- You have never owned a home or an interest in a home anywhere in Canada at the time of purchase.
- You are at least 18 years old.
- You intend to occupy the property as your principal residence within a set period.
- You complete the provincial refund forms and provide requested identification and declarations.
Most lawyers prepare and submit the refund application as part of closing when you qualify. Make sure you provide all documents early so the refund is processed promptly.
Non‑Resident Speculation Tax in Aurora
Aurora is in the Greater Golden Horseshoe, where Ontario’s Non‑Resident Speculation Tax can apply to certain non‑resident buyers. This tax is separate from land transfer tax and is charged in addition to it. If you are a foreign national, foreign corporation, or a taxable trustee, ask your lawyer to assess whether NRST applies and what relief, if any, may be available.
Budgeting for a smooth closing
Your closing budget in Aurora should include more than the down payment. Add line items for:
- Land transfer tax
- Legal fees and disbursements
- Title insurance
- Adjustments with the seller, such as property taxes and utilities
- Home insurance and utility setup costs
If you are buying a higher‑value property, model the land transfer tax early. The amount can materially affect your cash required at closing. For purchases above $2,000,000, confirm whether the additional 0.5% on the portion above the threshold applies to your specific property type.
Quick checklist for your lawyer meeting
- Government‑issued ID for all purchasers
- Agreement of Purchase and Sale and any amendments
- Proof of first‑time buyer status, if applicable
- Source of funds details for closing
- Questions about NRST exposure, corporate or trust ownership, or assignment agreements
Strategy and negotiation tips
- Sellers are not required to pay your land transfer tax. That said, you can negotiate a price adjustment or a closing credit that helps offset your costs. Any credit should be written into the agreement and reflected in the Statement of Adjustments prepared by the lawyers.
- If you are exploring builder new homes or assignment purchases, ask your lawyer to review the contract language. LTT, HST, and other taxes may be treated differently in these situations.
When to consult professionals
Certain situations benefit from early legal and tax guidance:
- Purchases above $2,000,000 where the additional 0.5% may be relevant
- Non‑resident purchasers who may be subject to NRST
- Corporate, trust, or nominee purchasers that have different eligibility profiles
- Assignment transactions and estate or spousal transfers with unique rules
Clear advice upfront protects your budget and timeline. It also keeps your closing experience calm and predictable.
Ready to plan your purchase with clarity and precision? For tailored guidance on budgeting, timelines, and a smooth closing in Aurora, connect with Lisa Colalillo. What’s Your Property Worth?
FAQs
Who pays land transfer tax in Aurora?
- The purchaser pays, and your lawyer typically collects and remits the tax at closing.
Is there a municipal land transfer tax in Aurora?
- No, Aurora buyers pay only the provincial land transfer tax, unlike Toronto where a separate municipal tax also applies.
How is Ontario’s land transfer tax calculated?
- Ontario uses a tiered system where portions of your price are taxed at different rates, with possible additional tax on the portion above $2,000,000 for certain residential properties.
Do first‑time buyers get a refund?
- Yes, eligible first‑time buyers may receive a provincial refund up to a commonly quoted maximum of $4,000, subject to meeting the criteria and filing the required forms.
Does NRST apply to Aurora purchases?
- It can apply to certain non‑resident purchasers in the Greater Golden Horseshoe and is charged in addition to land transfer tax.
When is land transfer tax paid?
- It is paid at or before registration of your deed, which your lawyer handles as part of closing.
