Canada Property ROI Calculator

Land Transfer Tax (Ontario) in Canada uses a progressive bracket system. Ontario provincial Land Transfer Tax is a progressive tax on property purchases. Each bracket rate applies only to the portion of the price within that range. For Toronto purchases, an additional Municipal LTT applies on top — select "Toronto, Ontario" from the Region dropdown. First-time buyers may qualify for rebates of up to C$4,000 (Ontario) and C$4,475 (Toronto), not modelled here. The current rates are: 0.5% on the first C$55,000, 1% on C$55,000 – C$250,000, 1.5% on C$250,000 – C$400,000, 2% on C$400,000 – C$2,000,000, 2.5% on amounts above C$2,000,000.

When purchasing property in Canada, typical closing costs include: Legal Fees, Title Insurance, Home Inspection, Appraisal Fee. These are paid by the buyer at or before completion, in addition to the purchase price and Land Transfer Tax (Ontario).

Ongoing costs for property owners in Canada typically include: Property Tax, Home Insurance, Maintenance & Repairs. These are annual costs that should be factored into your rental yield and cash flow calculations.

Capital Gains Tax applies when you sell a property for more than you paid. Capital gains on property are added to taxable income at your marginal rate. From 1 January 2026: individuals include 50% of the first C$250,000 of annual gains; gains above C$250,000 are included at 66.67%. Corporations and most trusts include 66.67% of all gains. The principal residence exemption fully exempts gains on your primary home. WARNING: Properties held less than 365 days are subject to the federal anti-flipping rule — gains are 100% taxable as business income with no principal residence exemption. Your primary residence is exempt from capital gains tax.